This is what the Treasury will take with the extraordinary draw of the Child
If the special Christmas raffle on December 22 kicks off the Christmas festivities, the extraordinary El Niño could be considered the finishing touch. In addition to distributing a rain of millions throughout the territory, it will give the Treasury a good pinch. According to the estimate made by the Technicians Union of the Ministry of Finance, Gestha, if all the tenths of the first and second prize are sold, the Treasury will be made with about 19.5 million euros.
The Treasury Technicians have requested that the exempt minimum of 2,500 euros that was in force until mid-2018 be returned to, since they consider that “it does not make sense not to pay taxes for a game of chance and yes for an unemployment benefit”.
The Ministry of Finance only tax the first two prizes of the Children’s Lottery, of 200,000 and 75,000 euros per tenth, respectively, while for the third prize of 25,000 euros (and for the following smaller amounts) the lucky ones do not have to pay taxes.
Thus, of the 700 million euros in prizes that the Children’s raffle will distribute in Spain, only 137.5 million will be subject to the tax of the Treasury. The public coffers will retain 32,000 euros of each tenth of the first prize, and 7,000 of the second, so that the lucky ones will receive a net prize of 168,000 and 68,000 euros, respectively.
The Treasury Technicians have requested that the minimum exempt from Lottery prizes and ONCE and Red Cross draws, which since 2020 is 40,000 euros, go back to 2,500 euros, a limit that was in force in Spain between 2013 and 2018.
Gestha has recalled that lottery prizes do not have any impact on personal income tax of the beneficiaries nor do they affect them to apply for scholarships, assistance benefits or other public aid. The union thus considers that “in order to put an end to tax fraud, it is not necessary to increase exemptions, but to combat evasion through greater powers and control”.
The Treasury Technicians have also insisted on their request to amend the law to prevent companies in losses or partially exempt from paying taxes, since they consider that the collection of premiums by companies keep skyrocketing.
On this matter, Gestha has described as a “decisive step” the approval of the fraud prevention law, which obliges the State Lotteries and State Betting Society and the ONCE to report all the legal details of the beneficiaries of their raffles. With this, the awards received by foundations, associations and non-profit entities were reduced to zero in 2021.