Business
Rank agrees cap on contingent
Rank agrees cap on contingent.
About this update from Rank Group Plc
[{"type":"text","content":"\n RNS Number : 3321T Rank Group PLC 27 September 2010 \n\n27 September 2010\n \nRank agrees cap on contingent tax liabilities\n \nThe Rank Group Plc ('Rank' or the 'Group') announces that it has entered into an agreement with a third party to cap some of its contingent tax liabilities.\n \nThe agreement relates to £59.1m of VAT refunded to Rank by Her Majesty's Revenue & Customs ('HMRC') in 2008 as a result of the Group's successful claim that the tax had been wrongly applied to games of interval bingo.\n \nAlthough Rank's claim was upheld by both the VAT Tribunal and the High Court, HMRC has appealed these decisions and the case has now been referred to the European Court of Justice ('ECJ'). A final decision is expected by the end of 2012.\n \nRank will make a cash payment of £4.5m in 2010 in order to fund the agreement, which will be recorded as an exceptional item. In the event that the ECJ finds in favour of HMRC, Rank's net liabilities would total £25.6m plus interest as a result of the cap agreement rather than £66.1m plus interest if the agreement was not in place.\n \nThe agreement does not cover a further £42.5m plus interest of VAT refunds relating to overpaid VAT on games of main stage bingo and amusement machines; nor does it cover a contingent tax asset of up to £35m related to a claim made under the Condé Nast/Fleming ruling.\n \nEnds \n \nContact \n \nFor City enquiries:\n \nThe Rank Group \nPhilip Munn, Investor Relations +44 (0)1628 504 149\n \nBank of America Merrill Lynch\nPeter Brown +44 (0)20 7996 0591\n \nFor press enquiries:\n \nFinancial Dynamics \nBen Foster/Marc Cohen +44(0)20 7831 3113 \n \nAbout the Rank Group \nRank is a leading European gaming business, head-quartered 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 on-line gaming and bookmaking services. For more information about The Rank Group, visit www.rank.com. \n\nThis information is provided by RNSThe company news service from the London Stock Exchange END MSCEAKNXASSEEEF \n ","length":3838,"tagName":"div"}]