| Rank Group hits £36m VAT jackpot |
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| Written by Adrie van der Luijt | |
| Thursday, 22 May 2008 | |
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The UK’s VAT treatment of mechanised cash or interval bingo was inconsistent with EU rules.
The VAT & Duties Tribunal ruling on Thursday means that The Rank Group Plc (LSE:RNK), which brought the case, stands to recoup £36 million in overpaid VAT. Rank, the owner of Mecca bingo clubs, argued that the current position, under which some types of mechanised cash bingo are taxable while others are exempt from VAT, is contrary to the principle of fiscal neutrality. This requires the same or similar services to be treated in the same way for the purposes of VAT. The Tribunal accepted this argument and upheld, in principle, Rank’s claim for overpaid VAT of £36 million. Tony McClenaghan, head of indirect tax at Deloitte, which advised Rank, said that the decision upholds the principles set out by the European Court of Justice in the Linnewebber case. “The same principles will apply to any taxpayer which has paid VAT on this type of bingo. It’s a case of eyes down for other taxpayers to consider if they have claims to submit for overpaid VAT and interest to HM Revenue & Customs,” he concluded. Related articles
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