GVC Holdings has been the latest corporation to join a host of business peers in claiming redress from Her Majesty’s Revenue & Customs Tax Based Terminals.
After William Hill followed the lead of Betfred and Rank Group earlier in the week with the bookmaker potentially positioned to secure a multi-million £tax rebate, GVC estimates that its own claim will result in a cash inflow of about £200 m to the group.
The sports betting and gaming group “comprises” that in the period from October 1, 2002 to January, 2013 it will be eligible for a rebate of historic VAT incorrectly paid on gaming machine revenue from its Ladbrokes betting shops.
The group comments in its media statement that it: ”learned that the UK tax authority, HMRC, has taken the decision not to appeal the ruling of the Upper Tribunal (Tax and Chancery Chamber) in the cases of the Done Brothers (Cash Betting) Ltd (trading as Betfred) and Rank Group Plc concerning the application of VAT to certain gaming machines and fixed odds betting terminals within licensed betting shops”.
Adding: “The Rank dispute concerned the VAT liability of gambling made using certain gaming machines prior to 5 December 2005 while the Done Brothers dispute related to the tax treatment of supplies of gambling by means of fixed odds betting terminals during the period prior to 31 January 2013.”
Having previously lost two separate court rulings against Betfred and Rank, HMRC last week announced that it would no longer pursue further tribunal judgement on the tax dispute.
Following the ruling of the High Court, William Hill became the first bookmaker to seek government compensation, stating that he was examining scenarios related to its rebate fee.
In a statement the group further detailed: “Whilst William Hill currently expects the net cash recovery to be material, its precise quantum remains uncertain. Nevertheless, the board has considered a number of scenarios which suggest a potential net cash recovery of between £125m and £150m.”