Yesterday the UK’s Rank Group announced that it had received £74.8 million in overpaid Value Added Tax (VAT) from Her Majesty’s Revenue and Customs (HMRC). The repayment covers VAT paid on games of bingo from 1973 to 1996. Rank has been informed it also will receive around £79.5 million of interest relating to this claim later in the month. 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.

These 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. HMRC 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 in 2011. If HMRC is successful in its appeal, Rank will make the appropriate repayments.

Last month, in its financial report for the year ended 31 December 2010, Rank recorded another year of growth in customers, customer visits and operating profits. Rank CEO Ian Burke commented, “The Group continued its progress in 2010, delivering strong growth in earnings through improved revenue and profit generation and a further substantial reduction in net debt. At the same time, we stepped up investment in our businesses and improved our competitive position in our key markets.”

The VAT refund, if ratified by the European Court of Justice, should help to make 2011 a very good year for the company. (E-03.23.11)

© Copyright 2011 CasinoCompendium



>>> return to archives
>>> return to frontpage