TIDMRNK
RNS Number : 2554V
Rank Group PLC
07 July 2009
7 July 2009
HMRC appeals High Court ruling
The Rank Group Plc ('Rank' or the 'Group') has been advised that Her Majesty's
Revenue & Customs ('HMRC') has lodged an appeal against last month's High Court
ruling on the overpayment of VAT on games of interval bingo and on gaming
machines.
In May and August 2008, the VAT & Duties Tribunal upheld Rank's respective
claims that the inconsistent application of VAT to games of interval bingo and
to gaming machines contravened the European Union principle of fiscal
neutrality. These rulings were in turn upheld by the High Court in June 2009,
following an appeal from HMRC.
The case will now go to the Court of Appeal, although at present no date has
been set for the hearing.
In November 2008, Rank received from HMRC GBP59.1m in overpaid VAT, relating to
the ruling on interval bingo. The Group has not as yet received any repayment in
respect of its GBP26.0m VAT claim on gaming machines.
Rank had anticipated that HMRC would need to lodge an appeal by 29 June 2009 but
this deadline was subsequently extended to 6 July 2009.
ends
Further information
The Rank Group Plc
Dan Waugh, director of investor relations 01628 504 053
Financial Dynamics
Ben Foster/Marc Cohen 020 7831 3113
Notes to editors
1. Interval bingo claim
Interval bingo is a popular form of bingo played during the intervals between
games of traditional (or 'main stage') bingo. Rank's claim relates to VAT paid
on revenue from games of interval bingo played in its Mecca Bingo clubs between
January 2003 and June 2008 (inclusive).
2. Gaming machine claim
Rank's claim covers the period November 2002 to December 2005 (inclusive) and
relates to VAT paid on revenue from Section 31 and Section 34 gaming machines in
its Mecca Bingo clubs and Grosvenor Casinos.
3) Fiscal neutrality
The European Union's law of fiscal neutrality requires that supplies of services
that are the same or similar should be not be treated differently for VAT
purposes. This position was confirmed in the European Court of Justice case
Finanzamt v Linneweber (2005).
4) About the Rank Group
Rank is a leading European gaming business, headquartered in the UK and listed
on the London Stock Exchange (RNK.L). The Group's principal activities are the
operation of bingo clubs and casinos in the UK with complementary online gaming
and bookmaking services. For more information about The Rank Group, visit
www.rank.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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