São Paulo Tax Decision Sets Successful Poker Precedent

This week, the 16th São Paulo Public Finance Court ruled in favour of Stack Eventos Esportivos, the company that organises the famous Brazilian Poker Series (BSOP) event, in a case involving the payment of the town’s poker taxes.

According to the decision, which the Municipality of São Paulo may appeal to, it cancels the Service Tax (ISS) collection determined on the prizes during poker tournaments. The Decision sets a good precedent for other national poker operations.

BSOP technical director, Devanir Campos as stated by BNL Data said: “It’s a decision that leads to the growth of our sector in Brazil, as it provides a broad legal understanding of the functioning of the ecosystem of such a new sport in our country.”

BSOP had been fined for failing to pay the ISS tax, and the municipality had received five tax evasion notices. The tax had been based on each participant’s collection generated from the selling of tickets.

Stack assured “not all collections in the company’s accounts represent revenue subject to the payment of the ISS.”

“Stack has always paid taxes on amounts that, despite being in its checking account, do not constitute company revenue,” argued the event organiser before Judge Thiago Baldani Gomes de Filippo.

The judge acknowledged the claims of Stack and agreed that “regularity and legal responsibility of the company in regards to the management of its tournaments were verified.”

Stack CEO Igor Trafane said: “Another decision would’ve been disastrous for several markets. Travel and advertising agencies also depend on the understanding that not all revenue is purely from a company. But this was only possible thanks to the seriousness implemented by Stack to deal with financial transactions.”