25 May 2010
Bingo News: Rank Group Receives huge VAT repayment
The Rank Group, a leading European gaming and betting company has announced that it has received a massive 42.5 million pounds VAT repayment from Her Majesty’s Revenue and Customs.
The company, whose head office is based in the United Kingdom, first entered the gaming market back in 1961 and is now responsible for some of the biggest names in the business such as Mecca Bingo and Grosvenor Casinos.
The original claim was brought to court as a concern was raised that there had been an inconsistency in the application of VAT to revenue from the Rank Group businesses.
The staggering repayment came after the Rank group proceeded to convince the courts that the practice of the application had contravened the European Union principle of the fiscal neutrality. A series of court battles ensued with the first in the First-Tier Tribunal tax chamber and the second in the Court of High Justice. After successfully securing winning judgements in both courts, HMRC was ordered to return 16.1 million pounds of VAT paid on main bingo games and a further 26.4 million pounds of VAT paid on amusement machines.
The staggering repayment came after the Rank group proceeded to convince the courts that the practice of the application had contravened the European Union principle of the fiscal neutrality. A series of court battles ensued with the first in the First-Tier Tribunal tax chamber and the second in the Court of High Justice. After successfully securing winning judgements in both courts, HMRC was ordered to return 16.1 million pounds of VAT paid on main bingo games and a further 26.4 million pounds of VAT paid on amusement machines.
It is expected that Her Majesty’s Revenue and Customs will be contesting the judgement and will be taking the case to be heard in the European Court of Justice in 2011.
Should the outcome of the appeal favour the HMRC then this could be bad news for the Rank Group as it is anticipated that the group will have to repay the full 42.5 million pounds as well as any interest that may have accrued since the repayment was made.
Should the outcome of the appeal favour the HMRC then this could be bad news for the Rank Group as it is anticipated that the group will have to repay the full 42.5 million pounds as well as any interest that may have accrued since the repayment was made.
It may be a while before a final outcome is confirmed but we will make sure that you are kept up to date with all the latest developments as and when they happen.