All Eyes on Australia’s Gambling Tax Case

David Walsh, the art-loving punter, speaks about the issue with Australian Tax Office According to the Australian Broadcasting Corportion reports published on Thursday, 51-year-old David Walsh attracted the unwanted attention of the Australian Tax Office which is trying to collect around A$ 40 million in retroactive taxes. The outcome of this tax case could set precedent for gamblers in the land downunder. This wealthy Australian art lover made his fortune on major sports wagers in Hobart, Tasmania and developed a successful gambling syndicate used to bet on horse racing and other sports. It has been estimated that the Punters Club placed at least a billion dollars with major Aussie bookies. Walsh spoke out against the ATO's attempt this week, telling ABC that he rejected tax officials' claims that his syndicate had destroyed records and used encryption software to conceal data. Furthermore, he explains that on several occasions over the past two decades he openly asked ATO if he should pay tax and was answered that he should not. "They always decided that gambling isn't taxable, perhaps because no gambler has ever been taxed, or perhaps they're concerned about the possibility of some losing gamblers claiming a deduction," Walsh said. Walsh has been publicly supported in his resistance to the tax office by former Greens Party leader Bob Brown who said: "The tax office has bungled this and has been quite unfair about it, and they're to blame.” Walsh's main objection to the tax claim is its retrospective character. He says he has no issue with paying legally due tax to the government, as he still hopes that a settlement can be reached through negotiations. Namely, ATO seeks to resolve the matter in the courts and has filed documents alleging Walsh has an interest in the highly successful Punters' Club which attempted to hide details of its A$2.4 billion operation by destroying business records and using encryption software to conceal data. Walsh denies these allegations, saying he has never been requested to show his email records. "So they don't know whether I use encryption or how often," he concludes.