UK-listed gaming operator Rank Group has applied for leave to launch an appeal in the UK’s Supreme Court after the Court of Appeal ruled yesterday in favour of Her Majesty’s Revenue & Customs (HMRC) in a dispute regarding the overpayment of VAT on gaming machines.
Rank received £30.8m from HMRC in May 2010 in compensation for overpaid VAT on certain types of Section 31 and 34 gaming machines in its Mecca Bingo clubs and Grosvenor Casinos between 2002 and 2005, after the UK’s VAT and Duties Tribunal issued an interim decision in favour of the operator in August 2008.
Alongside the gaming machines claim, the company also appealed for overpaid VAT on land-based bingo operations between 2004 and 2009 in December 2009, worth £16.1m, with this sum yet to be disputed.
This came after Rank had already been awarded £59.1m from HMRC in November 2008, also related to the overpayment of VAT.
However, the appeal against the awarding of the £30.8m has been successfully disputed by HMRC, prompting the operator to launch an appeal with the Supreme Court.
Rank was unwilling to make any further comment on the ongoing case.
Shares in Rank Group plc (Co. Data) (LSE:RNK) are currently trading down 0.74 per cent at 148.50 pence per share as at 09:28 GMT in London this morning.