What is ‘Taxable’?
Taxable means that tax is liable to be paid on the amount in question. For example, earnings from employment are ‘taxable’ – workers must pay national, federal or state taxes as relevant to the money they make. Taxable income or taxable profit means the amount on which tax must be paid – this might not be the entire sum, but some conditional portion of it. For example, a casino‘s ‘taxable income’ is usually the amount of profit from bets and services, minus the number of expenses paid.
If an amount of money is described as ‘taxable’, this means that tax must be paid on that sum. It is essentially shorthand for ‘liable for tax’, and means that the government or some other authoritative commercial party is able to collect taxes on that amount. For example, if a 10% tax is imposed on sales profit and a business makes $100 selling products, they must pay $10 in tax. However, ‘taxable’ sums can also account for any necessary outgoings. If the company spent $20 ordering stock and then made $100 in sales, their profit is only $80. This taxable sum, at 10%, would be liable for an $8 tax.
In casino gambling, the profits which are taxable vary by jurisdiction. Often, casino services pay the most tax on their betting profits from the casino tables and machines – the taxable sum is simply the total of bets placed minus the sum of bets paid out before any expenses are accounted for. Entertainment service profits are usually where staff costs are covered, with tax due on takings after expenses are deducted. Tax on gambling is sometimes set high, as regulators hope to control the industry by maintaining standards and preventing problem gambling.
In some nations, taxable gambling profit also concerns the player. The USA is a notable example. Players pay tax on gambling earnings just as they would on their income, and they are obligated to declare any gambling profits in their annual tax return.