For those of you who don't know, Rank is the operating company for Mecca Bingo in the UK. They are a leading European gaming business which is listed on the London Stock Exchange and the second largest land-based bingo operator in the UK, and also operate in the casino industry. They have a very strong online presence and have been embroiled in a war against the government in the UK regarding the fact that bingo is unfairly taxed.
Other gambling activities are taxed only 15%, however bingo has to pay more tax at 22% and this is what led up to the challenge taking place. The unfair level of taxation for bingo in the UK has been cited as one of the reasons why many land based clubs have been closing down. When a land based bingo club closes down it deprives much of the community of a social outlet. Not everyone wants or can play online bingo, and these closures do seem to affect the elderly quite seriously. It almost appears as though the government is unfairly targeting this industry at a time of economic weakness.
However Rank Group is not taking this lying down and on Monday the High Court backed the group in their claim for a £62 refund. If this ruling stands and sets a precedent, it will pave the way for other bingo operators to do the same. It could mean that gaming companies may be in a position to claim back as much as £500 million in overpaid taxes.
Already over 1 000 claims have been made against Revenue and Customs, however the ruling on Monday is the most recent setback for Revenue and Customs who have been found to be breaching fiscal neutrality rules which are pertinent to the European Union Free Trade Association. The professional services company, Deloitte has been advising Rank in this matter, and the outcome is hoped to provide a welcome boost to the hard-hit bingo industry in the UK. It is a landmark decision, and Customs and Revenue is said to be preparing a brief on how other operators may go about claiming for overpaid VAT.
Visit Mecca Bingo
Subscribe to this comment's feed
