Business
Gaming Machines Consultation
Gaming Machines Consultation.
About this update from Rank Group Plc
[{"type":"text","content":"\n RNS Number : 2197B Rank Group PLC 22 October 2009 \n\nThe Rank Group Plc\n\n\nRank submits response to gaming machines tax consultation\n\nThe Rank Group Plc ('Rank' or the 'Group') has responded to HM Treasury's consultation on proposals to replace the existing taxation regime for gaming machines with a gross profits tax ('GPT').\n\nThe submission confirms Rank's previously stated view that gaming machine GPT would need to be set at a rate of 15% in order to be neutral for the Group. This level of taxation would be consistent with the current rates of general betting duty (sports betting), remote gaming duty (internet betting and gaming), football pools duty and the starting rate of casino gaming duty.\n\nRank's calculations have been validated by Ernst & Young LLP.\n\nHM Treasury has stated that it intends any changes to gaming machine taxation to be revenue neutral for the Exchequer, although this does not necessarily mean that its impact would be neutral for Rank. \n\nThe submission also confirms Rank's analysis of the effects on Group profits should GPT be set higher than 15%. Rank estimates that it would incur at least £1 million per annum in additional taxation for every percentage point over the 15% neutral rate. Within Rank, these costs would mainly be borne by Mecca Bingo.\n\nGiven the damaging effects of this year's increase in bingo duty (from 15% to 22%), Rank's submission urges the Government not to increase further the tax burden of what is already the most heavily taxed gaming sector in Britain. \n\nRank's response to HM Treasury's consultation on gaming machine taxation is available from http://www.rank.com/downloads/ranks_response_to_taxation_gaming.pdf. \n\nEnds\n\nContacts:\nThe Rank Group Dan Waugh, director of investor relations 01628 504053 \nFinancial Dynamics Ben Foster/Marc Cohen 020 7831 3113 \nNotes to editors: \nAbout The R...