Rewards Affiliates - Login Issue

[TheGooner]

Hi Dave.

What I am struggling with - and have always struggled with while following this - is why you think (and why your accountants think) that an unrelated casino paying Gaming Taxes on gross profits collected from players to (any) government has anything to do with your own company taxes or affects your tax situation.

GAMING TAXES ON GROSS.
There are at least half a dozen different jurisdictions that I see regularly - UK, Ireland, Germany, Canada, NZ - that have payments lists. But that's between the casino operator, and the respective governments.

As an affiliate we don't run a gaming operation, nor do we pay gaming specific taxes on actions players take at the casino. That's between the operator casino, and the governments, based on actual play.

I get that the reporting shows it as a deduction on our reporting - and it didn't used to. But it's an additional expense (governments changed laws since we both started in 2000's) and they are showing the method of attribution to each affiliate.

WHY DOES THIS TAX AFFECT YOU ?
Like all programs we get paid a share (rev share or turnover share) after deductions which now also includes these taxes. We get paid a monthly amount, record it, and pay income tax on our own companies operational profits at year end.

So I'm struggling to understand why you think that these taxes (and particularly NZ taxes) have special affect on your operation - or why you think that you're due some special invoice, or yearly total or accrual.

Why would affiliates, or advertisers, or any supplier be privy to, or expect detailed tax obligation reporting from ANY company. Their tax affairs are between the company and the governments.

SUMMARY.
Dave, I'm not getting at you - but I just don't understand your assertion that these taxes need to be reported back to affiliates - and/or that the taxes paid hold some value to be claimed against.

You seem to be of the belief that you can reduce your own companies annual income tax burden by claiming some sort of previous payments on these gaming taxes am I right? If so it does not make sense to me.

Now, I'll be the first to admit that tax rules don't always make sense, so I'm happy to be educated on this area. But all the gaming companies we work with pay these taxes don't they?

QUESTIONS.
So my questions :

1/ Is it a special Australian rule, and applicable to you because Rewards Affiliates operate out of Australia?

2/ Is there some sort of Australian GST getting involved that creates a special situation?

3/ Why is it New Zealand gaming taxes that you're particular about? There are many countries being paid. Why are NZ gaming taxes being singled out?

4/ Why does your tax specialist think prior gaming taxes paid by another unrelated company can reduce your company tax burden?

I am NOT getting at you Dave - I just do NOT understand how it works - because after 25 years of doing this I've never heard of or experienced this claim or situation. And I've been very clear and very thorough with my local accountant and the NZ Inland Revenue about the nature of our business.

 

[xecutable]

Lol Dave,

None of it is threats, just stating the obvious for anyone who's going to take a billion dollar company to court. You think I didn't want to take Skybet to court, like many others? But I contacted my lawyer right away, and he presented the facts for what they are. Could have sent me to fairyland and milk me for every buck I had but he didn't.

Notice the "many others" part, cause once again, judging by the participation of everyone around here, dare I to say so far you are the only one that has problem with RA in terms of tax and commissions.

Of course I'm promoting RA, and I'd drop them if there was some consistency to this story. It's a business after all and personal relationships don't matter, hence me knowing Renee for years is irrelevant.

So here are the inconsistencies in your story: a lot of proof mostly from threads of forums, with a formal complaint that did not move. If everything is rock solid why didn't they proceed to nail those "thieves" (all your words). How can an official government body, let them slide like this?

The tax calculations have always been nonsensical to me since the so called "tax" you are paying on wagershare, has NOTHING to do with YOUR earnings. Those 2 numbers have NO correlation AT all. One is from the player's losses, the other comes from the total wagers.

Third one is those who do choose to go the legal route are always told to keep out of any publishing.

That's all. None of it is threats, none of it has to do with my personal relationships with my managers. But if you are asking me or anyone reading to drop a long term partner, we are gonna need more than a "trust me, it is how I say, it is". I've posted here to get some light, but I see we are just circling around, so yeah it seems like it's pointless to argue. You have your views I have mine and nothing wrong with that.