17
NOV
Rank Win Legal Battle for £250 Million VAT Rebate

Rank Win Legal Battle for £250 Million VAT Rebate

Written by: Jeannie on 17/11/2011 15:55

An ongoing legal battle between Rank PLC and Her Majesties Revenue and Customs (HMRC) has concluded in favor of the gambling giants. The result means that Rank has overpaid £250 million in UK VAT and is entitled to a refund.

 

Deloitte was the law firm which represented Rank during the legal hearing, VAT expert for the firm, Anbreen Khan said, “This is a fair decision which corrects the unlawful application of VAT across the industry. We have always considered that there was a fiscal imbalance in the VAT treatment of certain gaming machines and forms of bingo. We are pleased that the ECJ has endorsed the previous rulings of the UK courts that VAT was wrongly levied and should be repaid.”

The court became involved when they learned that similar machines and games where being taxed differently. HMRC argued that their actions did comply with fiscal neutrality rules which the court overturned. The result could help set a precedent for other forms of gambling and will undoubtedly trigger a shake up at the Tax office.

The news caused the groups shares to rise 13p from 137p to 150p which is the highest since July 2011. This is fantastic news for the group which has been suffering at the hands of VAT rules for years. This is unlikely to change the current 22% VAT rule applied to bingo halls but it’s a great result all the same. 

Categorised Under: Bingo News,
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