Rank recoup £25 million in overpaid VAT

27 August 2008 In Business and Economy

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Rank recoup £25 million in overpaid VAT A gaming business has been awarded £25 million after a VAT & Duties tribunal.

Rank is set to recoup the money which it was found to have overpaid in VAT.

The tribunal ruled that methods used by HM Revenue & Customs (HMRC) to tax income from slot machines were "inconsistent" with EU rules.

It was declared that from November 2003 the treatment of VAT on certain gaming machines resulted in a large overpayment by Rank.

The company argued that certain machines were exempt and some were subject to tax, which broke "fiscal neutrality rules".

Barney Horne, indirect tax partner at Big 4 firm Deloitte, who advised Rank, said that tribunal's decision upheld previously principles set by the European Court of Justice.

"The same principles should apply to any taxpayer which has paid VAT on the income from these types of gaming machine and, therefore, other taxpayers should consider if they have grounds to submit claims for overpaid VAT and interest to HMRC," he added

Fellow Big 4 firm Ernst & Young were recently revealed to be providing advice to former Crocodile Dundee star Paul Hogan as part of his tax evasion investigation.



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