Sportech gets £93m VAT repayment from HMRC but appeal awaits

29th Jun 2016 09:51

(ShareCast News) - Football pools and horse-racing pari-mutuel systems specialist Sportech has potentially hit the jackpot with the UK tax office, taking payment of £93m after winning a seven-year tax battle over its "Spot the Ball" game.However, the money could have to be repaid if Her Majesty's Revenue & Customs (HMRC) wins an appeal.The Supreme Court is due to rule this autumn on the HMRC's request to appeal a previous Supreme Court decision that was made against a unanimous Court of Appeal decision in favour of Sportech.If HMRC is granted the right to appeal and then the Supreme Court overturns this previous unanimous decision and issues judgment in favour of HMRC, the £93m and any related interest would need to be repaid.Sportech said a potential Supreme Court decision, if the appeal is granted, could potentially he due in late 2017 or early 2018.In May 2016, HMRC sought permission from the Court of Appeal to make its appeal to the Supreme Court, which was refused, leading to HMRC lodging an application to appeal directly to the Supreme Court.HMRC has also agreed to pay a further £4m in the event of a successful final determination.