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GVC says HMRC investigating part of group over potential offences
21st Jul 2020 07:28
(Sharecast News) - Gambling firm GVC Holdings said British tax authorities were now investigating an unidentified part of the group after widening a probe into payment processing for online betting in Turkey.
The company said the Revenue & Customs (HMRC) department had on Monday informed it that it was examining "potential corporate offending".
GVC said it was "surprised by the decision to extend the investigation in this way and are disappointed by the lack of clarity provided by HMRC as to the scope of its investigation".
"HMRC has not yet provided details of the nature of the historic conduct it is investigating, with the exception of a reference to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation. In the meantime, the Company continues to co-operate fully with HMRC regarding the provision of information.
The company last year received an order requiring it to produce information HMRC relating to the group's former Turkish-facing online gambling business. At that time, the company understood that HMRC's investigation was directed at a number of former third party suppliers, GVC said on Tuesday.
AJ Bell investment director Russ Mould said the biggest short-term impact of the expanded probe "is the dreaded uncertainty it will create".
"It's no wonder GVC's management complain about the lack of clarity from the tax authorities, it is this lack of clarity which will do the damage," he said.
"It is the last thing it needed as it looks to execute on the opportunity created by the deregulation of the US market. Some shareholders have already decided they're not going to stick around to find out what happens next, judging by the share price slump on the news."
The company said the Revenue & Customs (HMRC) department had on Monday informed it that it was examining "potential corporate offending".
GVC said it was "surprised by the decision to extend the investigation in this way and are disappointed by the lack of clarity provided by HMRC as to the scope of its investigation".
"HMRC has not yet provided details of the nature of the historic conduct it is investigating, with the exception of a reference to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation. In the meantime, the Company continues to co-operate fully with HMRC regarding the provision of information.
The company last year received an order requiring it to produce information HMRC relating to the group's former Turkish-facing online gambling business. At that time, the company understood that HMRC's investigation was directed at a number of former third party suppliers, GVC said on Tuesday.
AJ Bell investment director Russ Mould said the biggest short-term impact of the expanded probe "is the dreaded uncertainty it will create".
"It's no wonder GVC's management complain about the lack of clarity from the tax authorities, it is this lack of clarity which will do the damage," he said.
"It is the last thing it needed as it looks to execute on the opportunity created by the deregulation of the US market. Some shareholders have already decided they're not going to stick around to find out what happens next, judging by the share price slump on the news."