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RankPlc OverPaid VAT Returned
Posted 3/23/11 : Online and land gambling group’s tax refund of GBP 74.8 million confirmed - but there's another hurdle ahead
The UK-based online and land gambling group Rank plc has received from Her Majesty’s Revenue and Customs GBP 74.8 million in overpaid VAT.
The repayment covers VAT paid on games of bingo from 1973 to 1996. Rank is advised that it will receive around GBP 79.5 million of interest relating to this claim later in the month.
The repayments follow successive rulings in Rank’s favour in both the First-tier Tribunal’s tax chamber (formerly the VAT and Duties Tribunal) and the High Court.
Her Majesty’s Revenue and Customs has appealed these rulings and the claims will now be considered by the European Court of Justice. It is expected that this appeal will be heard later in 2011, the group announced, adding that if HMRC is successful in its appeal, Rank will make the appropriate repayments.
The claims concern the inconsistent application of VAT to bingo revenue generated by Rank’s businesses. It is Rank’s contention that this inconsistency contravened the European Union’s principle of fiscal neutrality.
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