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Gaming giant Rank Group could soon scoop a multimillion-pound jackpot, after members of a tax tribunal found in the company's favour.
The owner of the Mecca Bingo chain of venues won its case against HMRC over VAT on interval bingo — smaller games played in licensed bingo clubs during breaks in the main session.
The VAT & Duties Tribunal ruled that the application of VAT to such games contravenes EU laws on fiscal neutrality, which require that supplies of services that are the same or similar should not be treated differently for VAT purposes.
Rank's claim for repayment was submitted to the Revenue in 2006 and is worth £36.6 million. The company said it was pleased with the tribunal's decision, but added that it was unlikely to see any material benefit in the current year if HMRC appeal before the 10 July deadline.
This is likely, said a spokesperson for the Revenue, which is considering 'the implications of the decision'.
