Rank Group awarded £59.1million in bingo tax rebate

In June we reported that Rank Group, which incorporates land based and online bingo favourite Mecca Bingo, were a step nearer being awarded a VAT rebate worth millions of pounds, after officially challenging and conquering the tax authorities. They persuaded the VAT and Duties Tribunal that the exercise of inflicting VAT on interval games breached European law.

Rank argued that the fact that HMRC imposed tax on selected interval Bingo games and not on others was a violation of 'European principles' which order that tax authorities are required to deal with services of a similar or equal nature with  consistency.

It has now been reported that the Rank Group have been awarded a massive £59.1million VAT rebate, which saw shares in the group rise significantly by 3%. The rebate covers a five year period from 2003 to 2008.

However HM Revenues and Customs have appealed the decision to award the rebate and the appeal will be considered by the High Court during the first six months of 2009. If HMRC wins the appeal, Rank may be forced to pay back the rebate with interest.

If the decision to award the tax rebate is upheld by the High Court, it is highly likely that other bingo operators will apply for rebates, which has the potential to boost the bingo industry by more than £100million.
 

21st November 2008