MINISTER of Public Administration Allyson West said the local gambling sector did business worth about an estimated $15 billion annually but typically ends up paying a yearly corporation tax of no more that less than $100 million, as she spoke on Friday in the Senate on the Gambling (Gaming and Betting) Control Bill 2021 to regulate the industry.
She said a $15 billion turnover would likely include 25 per cent in profits (in "a very, very generous calculation"), which should be charged at a 30 per cent rate of corporation tax.
West estimated that these figures should give rise to corporate taxes owed of $1.12 billion, while she said the Ministry of Finance's "very conservative estimate" was $500 million.
However she said the amount actually collected was $56 million in 2017, $82 million in 2018 and $70 million in 2019.
West lamented "a severe under-reporting" of corporate tax.
She said the industry shows many signs of success such as its prominently advertised gambling premises, but might not be making a reasonable contribution to the national coffers even as the State provides benefits to all its staff.
West suggested the bill would help provide more information which is needed to determine if the current way that private members clubs are regulated is sufficient or if this must be reassessed.
She said Trinidad and Tobago might look lax in international eyes by the fact that the US owners of a casino in TT was prosecuted in his own country but not in TT for tax evasion in TT, a case she said reminded her of the Piarco Airport expansion scandal.
West highlighted the fact that the the bill sets up a Gambling (Gaming and Betting) Control Commission which will be legally empowered to provide information to other agencies such as the Board of Inland Revenue, Financial Intelligence Unit and Customs and Excise Division.
Of the latter she said some gambling operators import gambling tables disassembled and do not declare their use, in an effort to avoid paying significant import duty. The bill will allow the division to visit the importer to impose the correct sum when such cases are unearthed.
Saying that gambling equipment can be manipulated to alter its record of activity, she said the bill lets the commission inspect such equipment for collecting taxes and to ensure a fair treatment of gamblers. The bill protects children by prohibiting their employment or visit to gambling establishments.
West noted that many employees of the sector were not registered for the National Insurance Scheme (NIS) (or Board of Inland Revenue), so over the past year had been unable to apply for the Salary Relief Grant for employees who had lost earnings during the covid19 lockdown.
"We had to create a parallel system in the Ministry of Social Development and Family Services to seek to identify these people and provide relief," West recalled.
West said gambling addiction was "a growing problem" with a variety of consequences, but with no official measures yet to deal with this.
"It leads to all sorts of c
