| Rank VAT Court Ruling: Good News for Bingo Industry |
| Written by Mark Bennett |
| Thursday, 10 November 2011 11:08 |
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Rank has today won its VAT legal battle with the UK Revenue and Customs. The Court of Justice of the European Union (ECJ) has supported Rank, the owner of Mecca Bingo. The decision should mean that all further claims for VAT refunds will not be appealed and land based bingo companies should be in position to receive further refunds. Since the start of the year, Rank has received more than £160m in VAT refunds and associated interest. In total (since 2008), the Group has received more than £280m in overpaid VAT and associated interest, following successful litigation at both the First Tier VAT Tribunal and the High Court. Her Majesty's Revenue & Customs has lodged an appeal against these rulings. The Court of Justice of the European Union ('ECJ') had been referred a series of questions on this matter. A ruling from the ECJ is now expected to be an end to the matter. Rank has disclosed that it has submitted further claims for at least £275m. The Group expects that these claims will be resolved over the course of the next two to three years. All bingo companies that received refunds were advised to keep the money separate as a successful appeal by the government would mean any refunds plus interest would have to be paid back. The news today will no doubt ensure the UK Government looks to implement its plans to change gambling taxes and regulation as soon as possible.
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