Rank's £74.8m bingo win

22nd Mar 2011 15:18

Rank Group has had a bumper bingo win today following the receipt of £74.8m it overpaid on its bingo revenues, with more to come in interest payments. At the time of its 2010 results announcement Rank estimated the repayment would be £65m plus interest. The repayment from Her Majesty's Revenue and Customs (HMRC) related to VAT paid on bingo between 1973 and 1996. The interest has mounted up and Rank will receive a further £79.5m to cover the interest later this month. Rank claims that the application of VAT to bingo revenue was inconsistent and that it "contravened the European Union's principle of fiscal neutrality". Rank has won judgements in the First-tier Tribunal's tax chamber and the High Court. HMRC has appealed to the European Court of Justice and the appeal should be heard later this year. If HMRC wins the appeal then Rank will have to pay back the cash.