Annual Report and Accounts 2022 to 2023
p) Treatment of Economic Crime Levy (ECL)
From the 1 April 2023, the Gambling Commission will collect the Economic Crime Levy (ECL) from licensed casino operators. The ECL is an annual charge on entities that are supervised under the Money Laundering Regulations (MLR) and whose UK revenue exceeds £10.2 million per year.
The ECL is being collected by three public bodies. These are:
- Financial Conduct Authority (FCA)
- His Majesty's Revenue and Customs (HMRC)
- Gambling Commission (the Commission).
The amount payable will be determined by reference to their size based on their UK revenue from accounting periods ending in that year. Amounts will be payable by 30 September following the end of each financial year.
Although the cash payment will be in the following accounting year, the underlying economic activity will be in the present year. The Commission prepares its accounts on an accruals basis, per the International Accounting Standards Board's (IASB) ‘Conceptual Framework for Financial Reporting' and the the Financial Reporting Manual (FReM) 2022 to 2023 (section 4.1.3). The Commission must account for both the receipt and the subsequent payment to His Majesty's (HM) Treasury in this year’s financial accounts.
The Commission only recovers any direct costs as a result of undertaking the Levy collection. The amounts retained by the Commission are shown within the accounts as other income.
The Commission will collect the Levy amount on behalf of HM Treasury and transfer Levy amounts after deducting the costs of its collection under the principle previously explained.
Cost recovery or amounts due to be passed over to the Consolidated Fund at the year-end are shown within Note 5(d), Economic Crime Levy Income.
Last updated: 18 October 2023
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