The Rank Group, in the UK, has received £42.5m in overpaid VAT from her Majesty's Revenue and Customs, which covers VAT paid on games of main stage bingo and amusement machines.
The repayment follows successive rulings in Rank’s favour in both the First-tier Tribunal’s tax chamber and the High Court. HMRC has appealed these rulings and the claims will now be considered by the European Court of Justice. It is expected that this appeal will be heard in 2011. If HMRC is successful in its appeal, Rank may be required to return the payment with interest.
The claim concerns the inconsistent application of VAT to revenue from Rank’s businesses, Mecca Bingo and Grosvenor Casinos. It is Rank’s contention that this practice contravened the European Union principle of fiscal neutrality.
