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The Rank group has just won a land mark victory at a VAT and Duties Tribunal, as they have ruled in their favour regarding the unfair taxation that is placed on the interval bingo games in their Mecca Bingo Clubs.
They are now set to pocket £36.3 million back from the HM Revenues and Customs service, although this is not set in absolute stone as HM Revenues could still appeal against the tribunal’s decision. The Rank Group however have welcomed this news with open arms and their share prices have just gone up + 1.98 of a %.
This claim was submitted by the Rank Group to the HMRC services back in 2006 and the tribunal has now ruled in their favour saying that the application of VAT that was made to the interval bingo games that are more commonly known as “Party Bingo” is in direct contravention of the European Union Laws of neutrality.
The EU’s fiscal neutrality laws quite clearly state for all to see that supplies of services that are the same or similar should not be treated differently for VAT purposes.
Most people are now aware of the double taxation law that is placed in the bingo industry in the UK, where the bingo operators have to pay 17.5% Vat on gross profits plus 15% tax. This really is an unfair and unjust law that is put on bingo, as this law is not placed on other sectors of the gaming industry like betting offices and such like.
Mecca Bingo have been fighting to get the double taxation law removed from the bingo industry, but to date no measures are forthcoming to ease the burden placed on bingo clubs throughout the UK from the government. We have already seen countless land based bingo clubs being closed down over the past year with more closures set to follow, yet still nothing has been done to aid them in their plight.
The Rank group also went on to say that if HMRC does appeal against this decision, then any benefit to their company would be unlikely to be registered in this year’s results. HM Revenues and Custom only has until June 10th to appeal against this ruling, so no doubt the Rank Group will be sitting with batted breath until this deadline passes.
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