Landmark Swedish Online Poker Tax RulingCourt Rules Online Poker Player Does Not Have to Pay Tax on Winnings from EU Companies |
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Sweden’s Östgöta Correspondenten newspaper has reported that a Swedish court has ruled an online poker player does not have to pay tax on SEK 650,000 ($80,900) he won playing poker online with an Isle of Man based site which is operated by a Cyprus-based company.
According to the newspaper the Swedish tax authority Skatteverket had originally demanded that Sargon Rüya pay tax on his winnings because the Isle of Man is not part of the EU but Rüya was able to prove the company was operated by a Cypriot parent and the earnings were therefore from within the EU.
However the court went a step further and said that Skatteverket could not place the burden of proof of where foreign companies operations are based on an individual in order to collect tax.
The court awarded costs to Rüya.