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Nugget Game: Swiss must tax 266,000 francs profit after all

Updated: Feb 6, 2020

Exchange nuggets in an online casino for CHF 266,000 and pay no taxes? At least that was the idea of ​​a Swiss gambling fan. But the responsible administrative court has now thwarted this plan. The verdict is not yet final, but the arguments are good. There is some evidence that the gambling fan has to pay taxes on his unusual investment. Some exciting questions were raised in the process.


Strange trade in nuggets in the center


📷Most gambling fans have probably never heard of the fact that it is possible to buy nuggets in an online casino. But there is a provider that has attracted a number of strange offers in recent years and is currently offering a very special “nugget game”. Go Here. The thing is actually quite simple: The customers buy these virtual nuggets and the price goes up or down depending on the activities of the customers. The basic idea is to buy at the right time and sell at the right time. At first glance, the game looks more like a stock exchange than a casino, although there have always been critics who more or less equate the two. But that's a very superficial assessment. In any case, there seem to be fans of gambling who invest a lot of money in the nuggets. After all, the current proceedings involved an amount of CHF 266,000. It's more than spending money, even for millionaires. However, the current procedure is not about an existing investment. The nuggets have existed for a long time and the court has to deal with transactions that took place several years ago.


The Swiss gambling investor bought the nuggets in 2011 and then sold them at a significantly higher price four years later. The proceeds amounted to CHF 266,000. That's an impressive amount, which can probably be explained by the fact that the investor got in relatively early and then the game has become a huge hit with the public over the next few years. Hop over to this website Obviously the man who lives in Zurich was one of the profiteers of this strange game of chance. But the federal tax administration was not particularly enthusiastic about the investor's idea of ​​not paying taxes on profits. That is why the proceedings finally came about, when the administrative court now found that it was a private capital gain and not a game win. The verdict can still be challenged so that ultimately it is not finally clear whether the gambling investor has to pay taxes or not. The procedure was also about clarifying whether the nuggets are not just a normal currency, possibly with some special features. However, the administrative court denied this question and that is the decisive reason why the profit should be taxed.


The difference between nuggets and bitcoin


The defense of the gambling investor held in court that nuggets are ultimately nothing more than a currency. Just like bitcoins, there would be no physical value, but there would still be a countervalue that would also have purchasing power. However, the administrative court clearly stated that there were big differences that would ultimately lead to the fact that it was not a currency. A very important factor in the reasoning is that the nuggets can only be traded through a single marketplace. The rules for this marketplace are set by a private company and there is no other way to make real money out of the nuggets. As is well known, it is different with bitcoins. Bitcoin is a cryptocurrency, which can be exchanged for many different trading venues in euros or other currencies. However, this is not the case with the nuggets and the court pointed out that the rules for buying and selling could be changed at any time by the provider of the game. More information


At first glance, the similarities between the nuggets and Bitcoin are striking. Just like with Bitcoin, the same applies to the nuggets that there are often rapid course trips. It is also possible to make real money from nuggets and bitcoin. But in the end that's not enough to make the nuggets a real currency. With Bitcoin, for example, it is possible to make real purchases. Among other things, it is also possible to pay with Bitcoin in some online casinos. However, there is no online casino where it is possible to fund casino games with Nuggets. The consequences are significant for the gambling investor. A high tax payment seems inevitable, even if the last word in court has perhaps not yet been spoken. But the reasoning of the administrative court is conclusive and therefore it is not to be expected that higher authorities will judge differently. But there may be the next surprise at the next trial.


Nugget Game should disappear from the Swiss market


Not least due to the current process, the Swiss authorities have taken a closer look at the provider of the nugget game and blocked the offer in Switzerland. This is comparatively easy in the context of the current Internet blocks to enforce the new gambling laws. However, the locks are not particularly secure, so it is theoretically still possible to buy nuggets. But every Swiss citizen should think twice, because the current case shows that the authorities are not sleeping. The gambling investor, who had been neglected in the current procedure, did not state the profit in the tax return at the time. However, the authorities quickly noticed that the man's assets had increased significantly and were therefore noisy. As long as the money is in bank accounts, it’s very difficult to hide such a high transaction. This would not be recommendable anyway, because if the current case law is confirmed, the damage to the person who wanted to hide a high Nuggets profit would probably be significantly higher than in the current procedure.


It is interesting to see that the provider of the nugget game is obviously not interested in following the rules of the Swiss authorities. The website will even explicitly point out that Swiss customers are still welcome. It remains to be seen whether this notice will remain in the long term. But the provider obviously feels safe. In addition, the company has already announced that it will take legal action in Switzerland to block the offer. This suggests that there are a few other Swiss people who invest in nuggets. Perhaps the Swiss tax authorities should continue to look around to generate additional income. But at the latest according to the current procedure, all players residing in Switzerland should know that it is not a good idea Nuggets profits not to be stated in the tax return. Whether it is a good idea to participate in the Nugget Game despite being blocked is a completely different question. Ultimately, every gambling fan has to decide for himself what is the right way. Of course, this also applies to German gambling fans. It would be exciting to see how German authorities and courts would judge if a similar case occurred.

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