LEGAL BULLETIN – Issue IV/2020

I. Acts and regulations for their application

Act on amending and supplementing the Gambling Act

On 04.082020 A law amending the Law on Gambling was promulgated. The changes are significant and can be divided into several directions.
The most significant change is that the Commission on Gambling will be closed and the executive director of the National Revenue Agency will take over. Its powers are mainly in the field of licensing and organization of the work of the control bodies. The general control of the implementation of the requirements of the law will be carried out by the employees of the agency through inspections. The NRA is also assigned to keep a register with information about the organizers of gambling games and licenses.
There are also big changes in the issue of licensing. Sole trader can no longer be licensed to organize gambling games with slot machines. Joint-stock companies and limited liability companies have this right, but they must have a capital of BGN 1 500 000 for a casino and BGN 500 000 for a gaming hall. There are also changes in the fees for issuing a license, as for a casino it is BGN 100 000 for a period of 5 years and BGN 200 000 for a period of 10 years, at the gambling halls the fee for 5 years is BGN 25 000 or BNG 50 000 depending on the number of the people, living in the settlement, in which they are located, and BGN 100 000 for a period of 10 years. Another change is the requirements for investment – up to 6 months after the issuance of the license must be proven to the NRA investments in the amount of BGN 2 500 000 for organizers of betting on sports events, BGN 1 000 000 for casinos, 250 000 for gaming halls with slot machines and organizers of raffle and lottery games.
Several more innovations have been introduced in connection with the restriction of the spread of gambling in Art. 10b, 10c, 10d, 10e of the Act. In all sites where gambling activities are organized, messages about the danger of gambling addiction and the possibilities for counseling in such gambling addiction should be placed in a prominent place. A register, created and kept by the NRA, contains information about the people with problems with gambling, and the organizers of gambling games are obliged not to allow the latter to participate in gambling games.

II. Draft bills and discussions

Tax package for
Fair and Simple Taxation

The European Commission has adopted a new Tax Package to ensure that EU tax policy supports Europe’s economic recovery and long-term growth. The Package is built on the twin pillars of fairness and simplicity. Fair taxation remains a top priority for the European Commission, as a means of protecting public revenues, which will play an important role for the EU’s economic recovery in the short-run and prosperity in the long-run.
The Package seeks to boost tax fairness, by intensifying the fight against tax abuse, curbing unfair tax competition and increasing tax transparency. In parallel, it focusses on simplifying tax rules and procedures, to improve the environment for businesses across the EU. This includes removing tax obstacles and administrative burdens for taxpayers in many sectors, so that it is easier for companies to thrive and grow in the Single Market.
The Tax Package is made up of three separate but related initiatives:

 The Tax Action Plan presents 25 distinct actions to make taxation simpler, fairer and better attuned to the modern economy over the coming years. These actions will make life easier for honest taxpayers, by removing obstacles at every step, from registration to reporting, payment, verification and dispute resolution. The Action Plan will help Member States to harness the potential of data and new technologies, to better fight tax fraud, improve compliance and reduce administrative burdens.
 The proposal on administrative cooperation (DAC 7) extends EU tax transparency rules to digital platforms, so that those who make money through the sale of goods or services on platforms pay their fair share of tax too. This new proposal will ensure that Member States automatically exchange information on the revenues generated by sellers on online platforms. The proposal also strengthens and clarifies the rules in other areas in which Member States work together to fight tax abuse, for example through joint tax audits.
• The Communication on tax good governance focusses on promoting fair taxation and clamping down on unfair tax competition, in the EU and internationally. To this end, the Commission suggests a reform of the Code of Conduct, which addresses tax competition and tackles harmful tax practices within the EU. It also proposes improvements to the EU list of non-cooperative jurisdictions, which deals with non-EU countries that refuse to follow internationally agreed standards. This has, so far encouraged third countries to adopt tax good governance standards, but more needs to be done. The Communication also outlines the EU’s approach to work together with developing countries in the area of taxation, in line with the 2030 Sustainable Development agenda.

The full text of the Package could be found at the following address:

https://ec.europa.eu/taxation_customs/sites/taxation/files/2020_tax_package_tax_action_plan_en.pdf

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