Gaming company wins multi-million-pound VAT decision  (28/08/2008)

Millions of pounds could be heading to the account of a UK gaming company after the VAT and Duties Tribunal in London ruled that it was entitled to recover tax from the authorities.

Rank claimed in 2005 that it paid too much value added tax (VAT) on gaming machines and that the HM Revenue & Customs should return the overpayments. The Tribunal ruled, the company says, that Rank was paying too much VAT from November 2003 at least. Rank believes it could be due £25 million ($46 million). Before December 2005, some machines were exempt from VAT and some were not.

In an interim judgement, the Tribunal said that the European concept of fiscal neutrality should have applied to the machines in the taxpayer's Mecca Bingo clubs and Grosvenor Casinos. Fiscal neutrality means that the same or similar services have to receive the same VAT treatment.

"The Tribunal has indicated that there is a strong likelihood that the case will be referred to the European Court of Justice," a statement from Rank said.