New legislation - 2006: Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 [2006 No 3]

Duty on racing

Sections 3 and 4 of the Gaming Duties Act 1971

The rate of duty and the formula for calculating duty on racing have been aligned with the rate and formula for casino gambling duty. Racing duty is set at 4% of gambling profits.

Background

The New Zealand Racing Board made a submission to government arguing that racing duty should be aligned with casino duty. Racing duty was previously set at 20% of betting profits, although because there were various concessions in the formula for calculating duty, the effective rate of duty was about 18%.

Key features

Racing betting duty is set at 4% of gambling duty. Section 4(1) sets the rate of duty at 4% of betting profits. Section 4(2) sets the formula for calculating betting profits as:

amounts - refunds - winning dividends

Amounts, refunds and winning dividends are defined in section 4(2). "Amounts" is the total of all amounts received by the New Zealand Racing Board or its agents for totalisator racing betting, sports betting and fixedodds racing betting. "Refunds" is the amount of refunds paid, and "winning dividends" is the amount of winning dividends paid out in respect of "amounts". Winning dividends are further defined in section 3 as the amount paid to a person for placing a winning bet, including amounts paid out of accumulated prize pools.

The effect of this formula is to align the calculation of racing betting duty with the calculation of casino gambling duty.

Application date

The new rate and formula for calculating racing betting duty will apply to all racing and sports betting on events for which results will be declared on or after 1 August 2006. Where an event is held over two or more days, it will be treated as having been held in the month in which the last day of the event occurs.

Other pages in: Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 [2006 No 3]

• Temporary exemption from tax on foreign income for new migrants and certain returning New Zealanders
• Clarification of treaty override power
• Rewrite amendments
• Reimbursement for the use of a private motor vehicle
• Organisation approved for charitable donee status
• Resident withholding tax on dividends paid by non-resident companies
• Amendments to disputes rules
• Miscellaneous technical amendments
• GST on goods outside New Zealand at the time of supply
• GST and distributions from a trust made for no consideration between associated registered persons
• GST and international postage stamps
• GST and credit contracts legislation
• Bloodstock write-down rates
• GST on goods and services supplied to security holders
• Trans-Tasman imputation credit-streaming
• Regrassing and fertilising expenditure
• The addition of Spain to the grey list
• Unacceptable tax position
• Reverse takeovers and continuity rules
• Increase in the child tax rebate
• Income tax exemption for gaming machine income of gaming trusts
• Tax consequences of natural disasters
• Taxation of foreign hybrids and foreign tax credit rules
• Exemption for rights to benefit from employment-related foreign superannuation schemes
• New disclosure and recordkeeping rules for foreign trusts
• Treatment of distributions from cooperatives
• ACC attendant care payments
• Venture capital investment alongside the Venture Investment Fund
• Corporate migration
• Allocation of research and development tax deductions
• Taxation of share-lending transactions
• Fringe benefit tax
• Depreciation rates
• Aligning provisional tax payments with GST
• PAYE subsidy for small businesses

Date published: 22 Jun 2006

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