Business
Rank receives ?74.8m VAT repayment
Rank receives ?74.8m VAT repayment.
About this update from Rank Group Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 4100D Rank Group PLC 22 March 2011 \n\n \n22 March 2011 \n \nRank receives £74.8m VAT repayment \n \nThe Rank Group (\"Rank\") has today received from Her Majesty's Revenue and Customs (\"HMRC\") £74.8m in overpaid VAT. The repayment covers VAT paid on games of bingo from 1973 to 1996. Rank is advised that it will receive around £79.5m of interest relating to this claim later in the month. \n \nThese repayments follow successive rulings in Rank's favour in both the First-tier Tribunal's tax chamber (formerly the VAT and Duties Tribunal) and the High Court. HMRC has appealed these rulings and the claims will now be considered by the European Court of Justice. It is expected that this appeal will be heard in 2011. If HMRC is successful in its appeal, Rank will make the appropriate repayments.*\n \nThe claims concern the inconsistent application of VAT to bingo revenue generated by Rank's businesses. It is Rank's contention that this inconsistency contravened the European Union's principle of fiscal neutrality. \n \nEnds \n \nContacts \n \nThe Rank Group \nDan Waugh, group strategy director 01628 504053 \n \nPhilip Munn, investor relations 01628 504149\n \nFinancial Dynamics \nBen Foster/Marc Cohen 020 7831 3113\n \nNotes \n \nFiscal neutrality \nThe European Union's principle of fiscal neutrality requires that supplies 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). In June 2009 the High Court (confirming the decisions of the VAT & Duties Tribunal (now the First-tier Tribunal's tax chamber) accepted that HMRC had breached this principle and that therefore Rank's claim should be accepted. \n \nPrevious announcements \nRank first announced that it was considering making a claim to receive repayment of VAT overpaid on revenue from bingo in this period on 26 February 2009 with successive updates providing such detail as was available at the time. The latest update on the estimated settlement was included in the financial results for the year to 31 December 2010, which was released on 25 February 2011. At the time, management's best estimate of the claim was £65m plus interest. Today's announ...