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Sportech Vat Claim Finalized
SPORTECH GBP 97 MILLION VAT CLAIM FINALIZED (Update)
As HMRC’S permission to appeal is refused.
Sportech PLC will be pleased to see the back of a drawn out legal battle with Her Majesty’s Revenue & Customs in connection with a GBP 97 million VAT repayment claim on their “Spot The Ball” competition, initiated in 2009 .
After much to-ing and fro-ing, the Supreme Court has ultimately refused HMRC permission to appeal an earlier court ruling which unanimously favored Sportech PLC.
“This now, for Sportech, successfully brings this matter to a close,” a press statement reads.
A sum of GBP 93 million was paid to Sportech by HMRC in the middle of June 2016, after the Supreme Court ruled in favor of Sportech for the full amount and ruled legal costs, accumulated during the protracted court battle, be paid by HMRC.
While the company expects to receive the balance of around GBP 4 million from HMRC shortly, Sportech awaits the outcome of a separate court case, due to be heard in July 2017, in which it is arguing for compound interest on the amount, rather than simple interest. Should the court rule in Sportech’s favor, the original amount is likely to almost double.
"We are delighted that after nearly eight years, this case is now over and the Supreme Court has upheld the unanimous decision of the Court of Appeal,” said Ian Penrose, chief executive officer of Sportech, said.
In related news, Sportech PLC chief executive officer, Ian Penrose, and chief financial officer, Mickey Kalifa, increased their beneficial interest in the company by 100,000 and 41,205 ordinary shares respectively in terms of the Company’s long term incentive plan.
Penrose increased his beneficial interest in the Company to 950,000 and Kalifa to 89,613 ordinary shares.
In additional company disclosures, non-executive Chairman, Roger Withers, has informed the Company that he has been appointed as a Director and Chairman of the Compensation Committee of Inspired Entertainment, Inc.
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