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Leading Gaming Business Wins VAT and Duties Tribunal
by Robert Lee, Tax-News.com, London

17 November 2008

Rank Group Plc, which runs Mecca Bingo clubs nationwide, has received GBP59.1m in over-paid value-added tax (VAT) after two years of battling with the UK government.

Rank filed a repayment claim to HM Revenue and Customs (HMRC) in 2006 on the grounds that the application of VAT on games of interval bingo had been found to contravene the European Union's principle of fiscal neutrality, according to which supplies of services that are the same or similar should not be treated differently for VAT purposes. As a consequence of the Tribunal's ruling, Mecca Bingo has not paid VAT on any games of interval bingo since July 2008.

The repayment covers the five-and-a-half year period from January 2003 to June 2008.

The repayment relates to a VAT and Duties Tribunal ruling in May 2008, which HMRC has appealed. The appeal will be heard by the High Court in the first half of 2009. If HMRC is successful in its appeal, Rank may be required to return the payment with interest.

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