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Taxation on Testa's Casino - Paralake City
TAX RATE:
In compliance with the American Gaming Association's recommendation to state and municipal government authorities, the tax on gambling in casinos amounts to one third of a percent on the profits made from gambling. Testa's Casino is in compliance with Paralake City Government's taxation laws, ensuring that current sales tax of 10% (accurate at time of document writing) is applied to it's services in accordance with the Paralake Sales of Goods and Services Act 2006. For every profit made off one client 1.5% tax is payed to the state government authority and a further 0.3% payed to the city government authority. A total of 1.8% of each profit made from one client is payed in tax to government authorities as per the American Federal Government's Gambling Regulations Act 1985 and further ammended in 2003.
The 1.8% standard tax rate is cut off at profits that exceed $15,000.00 in one session. 1.8% tax is payed on the first $15,000.00, and a standard higher tax amount of 2.5% is applied to the balance. This amounts to a total tax of:
TAX PAYMENT METHOD:
In accordance with the Paralake Banking Act of 2001 ammended in 2012, taxes on all digital payments are made at the counter during the purchase period and are logged directly to the city government's banking database where the tax rate and expected amount is recorded. At exactly 9:00 PM each day the recorded amount of tax owed is transferred from the bank account of the casino to the state and city governments. For cash purchases of casino services, tax is recorded by the business manager/accountant where applicable at the end of each working day and noted in the casino ledger. At a regular bi-weekly date the recorded tax amount is transferred personally to the tax office. The IRS is in charge of ensuring no fraud is committed in these ledgers by inspecting businesses. Tax recording ledgers are kept for a maximum of five months by the business in accordance with IRS regulations before they can be discarded.
LEGAL DISCLAIMERS:
Testa's casino is listed in the business registration office as a commercial casino operating under a commercial casino license with the city of Paralake. The commercial casino license is issued by the state government and was last ammended in 2017, to be ammended next in 2018. The PLPD is aware of the operation of legal gambling in the bazaar area of the Paralake business district and is informed on the holding of the license. The casino also holds a business license with the City of Paralake in compliance with the Business Licensing Act 2000. The possession of VIP only areas is in accordance with state laws on segregation and discrimination and has been delcared to not violate any of these laws under its casino license.
Testa's Casino is not permitted to allow anyone under the age of 18 to gamble or purchase it's services under the Paralake Sale of Goods and Services Act 2006 and state laws regarding Minors and Adult Establishments Act 1998 Ammended in 2010. Testa's Casino reserves the right to remove any clients from the premises if they deem it needed due to harassment or loitering and co-operates with the PLPD in coming to peaceful resolutions. However, reasonable force is permitted under Self Defence of body and property laws.
SIGN-OFF:
This document was written by Michael Duffy, lawyer at Duffy & Burnett Law Offices. It is officially recognised by the City of Paralake Municipal Government and the State Government as an accurate, detailed and accountable explanation of the tax compliance of Testa's Casino.
SIGNED: Michael Duffy
TAX RATE:
In compliance with the American Gaming Association's recommendation to state and municipal government authorities, the tax on gambling in casinos amounts to one third of a percent on the profits made from gambling. Testa's Casino is in compliance with Paralake City Government's taxation laws, ensuring that current sales tax of 10% (accurate at time of document writing) is applied to it's services in accordance with the Paralake Sales of Goods and Services Act 2006. For every profit made off one client 1.5% tax is payed to the state government authority and a further 0.3% payed to the city government authority. A total of 1.8% of each profit made from one client is payed in tax to government authorities as per the American Federal Government's Gambling Regulations Act 1985 and further ammended in 2003.
The 1.8% standard tax rate is cut off at profits that exceed $15,000.00 in one session. 1.8% tax is payed on the first $15,000.00, and a standard higher tax amount of 2.5% is applied to the balance. This amounts to a total tax of:
- 1.8% to a standard cut off point of $15,000.00
- 2.5% on the remaining balance
TAX PAYMENT METHOD:
In accordance with the Paralake Banking Act of 2001 ammended in 2012, taxes on all digital payments are made at the counter during the purchase period and are logged directly to the city government's banking database where the tax rate and expected amount is recorded. At exactly 9:00 PM each day the recorded amount of tax owed is transferred from the bank account of the casino to the state and city governments. For cash purchases of casino services, tax is recorded by the business manager/accountant where applicable at the end of each working day and noted in the casino ledger. At a regular bi-weekly date the recorded tax amount is transferred personally to the tax office. The IRS is in charge of ensuring no fraud is committed in these ledgers by inspecting businesses. Tax recording ledgers are kept for a maximum of five months by the business in accordance with IRS regulations before they can be discarded.
LEGAL DISCLAIMERS:
Testa's casino is listed in the business registration office as a commercial casino operating under a commercial casino license with the city of Paralake. The commercial casino license is issued by the state government and was last ammended in 2017, to be ammended next in 2018. The PLPD is aware of the operation of legal gambling in the bazaar area of the Paralake business district and is informed on the holding of the license. The casino also holds a business license with the City of Paralake in compliance with the Business Licensing Act 2000. The possession of VIP only areas is in accordance with state laws on segregation and discrimination and has been delcared to not violate any of these laws under its casino license.
Testa's Casino is not permitted to allow anyone under the age of 18 to gamble or purchase it's services under the Paralake Sale of Goods and Services Act 2006 and state laws regarding Minors and Adult Establishments Act 1998 Ammended in 2010. Testa's Casino reserves the right to remove any clients from the premises if they deem it needed due to harassment or loitering and co-operates with the PLPD in coming to peaceful resolutions. However, reasonable force is permitted under Self Defence of body and property laws.
SIGN-OFF:
This document was written by Michael Duffy, lawyer at Duffy & Burnett Law Offices. It is officially recognised by the City of Paralake Municipal Government and the State Government as an accurate, detailed and accountable explanation of the tax compliance of Testa's Casino.
SIGNED: Michael Duffy
