Advised casino regarding gambling tax during the COVID-19 quarantine

Motieka & Audzevičius’ tax law team has consulted one of the biggest casinos in Lithuania regarding gambling tax during the COVID-19 quarantine.

The client was obliged to pay gambling tax (which is calculated based on the number of casino tables as long as the casino license is valid) during the pandemic despite the fact that the Government of Lithuania banned casino’s activities during the quarantine. Consultations were related to situation when the substance over form principle should be applicable to the taxpayers as well.

Our tax team successfully argued that the fact that one governmental institution forbids operating casinos during the lockdown, the other governmental institution cannot be allowed to calculate tax for the casino tables for such time of period.