According to data from the Technicians of the Ministry of Finance (Gestha), lThe Tax Agency will be able to win 175.6 million euros in the next Christmas Lottery drawprovided that the first three prizes are distributed.
From Gestha they have also linked the increase in 8 series withholdings by 7.28 million compared to last year, thus increasing the number of prizes by 765,200, and the amount of the prizes by 112 million euros to reach 2,702 million. This means that, despite the fact that this year the tax exemption also applies to prizes of up to 40,000 euros, the Treasury is going to increase its collection.
By taxing Lottery prizes of 40,000 euros or more at 20%, the treasury will be left with 72,000 euros for every tenth prize awarded with the Gordo, 17,000 euros for the second prizes and, in the case of those blessed with the third prize, the withholdings will be 2,000 euros.
More measures to avoid fraud
For years there has been a demand for modification in the law to avoid potential frauduntil the 2021 anti-fraud law introduced a provision in the Gaming Law that authorized the AEAT to sign agreements with the State Lottery and Betting Society of the State, and the National Organization of the Spanish Blind (ONCE).
Consequently, these organizations are already reporting monthly to the AEAT of the prizes paid, with or without withholding, of the recipient and their legal representative, date of the draw, date and method of payment of the prize and withholding if it occurred.
Even so, the Treasury technicians continue to insist that they be authorized to start tax investigations and for money laundering, for the 244.8 million paid to legal entities for prizes of more than 40,000 euros between 2020 and 2023.
Gestha demands a tax reform
For the next steps of the tax reform, Treasury technicians insist on the need for the Government to eliminate the minimum exemption from prizes from State Lotteries or CCAA, ONCE and Red Cross to the first 2,500 euros. They see it as a way to discourage gambling and, furthermore, they consider that it makes no sense that a chance win of 40,000 euros is not taxed, and that an unemployment benefit or a subsidy of 1,000 euros is.