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Sportech Gets GBP 93 million In VAT Case

CASH BONANZA FOR SPORTECH AS V.A.T. BATTLE CONTINUES
 
Revenue and Customs hands over GBP 93 million.
 
Although Her Majestys Revenue and Customs continues to fight its long-running legal battle with Sportech over a VAT repayment, it has handed over the disputed GBP 93 million this week whilst awaiting the results of its appeal to the UK Supreme Court.
 
In a press statement Wednesday Sportech revealed:
 
"Sportech confirms that Her Majestys Revenue & Customs ("HMRC") has paid Sportech GBP 93 million in relation to the VAT repayment claim on the "Spot the Ball" game. The balance of approximately GBP 4 million will be paid to Sportech in the event of a successful final determination.
 
"Sportech is awaiting a decision from the Supreme Court as to whether HMRC has been granted the right to appeal to the Supreme Court against the Court of Appeals unanimous decision in favour of Sportech.
 
"If HMRC is granted the right to appeal (expected by Autumn 2016), and in the event that the Supreme Court overturns this unanimous decision, and issues judgment in favour of HMRC (potentially late 2017/early 2018), these monies together with any related interest would need to be repaid."
 
The claim, which was first submitted in 2009, was heard by the First-tier Tribunals Tax Chamber ("FTT") in October 2012. In March 2013, and resulted in a win for Sportech.
 
Following the FTTs rejection of HMRCs subsequent application for leave to appeal to the Upper Tribunal (Tax and Chancery Chamber), HMRC then applied directly to the UT, which granted such permission. The claim was heard by the UT in April and May of 2014 and it was announced in September that the UT had ruled in HMRCs favour.
 
In January 2015, Sportech was granted the right to appeal to the Court of Appeal. The hearing took place on 8 April 2016, following which on 4 May 2016 the Court of Appeal judges found unanimously in favour of Sportech.
 
On 13 May 2016, HMRC sought permission from the Court of Appeal to appeal to the Supreme Court, which was refused. Sportech announced on 6 June 2016 that HMRC had lodged an application to appeal directly to the Supreme Court.



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