Last checked at 10 Nov 2011 14:32
10 November 2011
European Court decides in Rank VAT case
The Rank Group Plc ("Rank") notes the decision of the Court of Justice of the European Union ('ECJ') regarding claims for overpaid VAT on certain types of amusement machines and bingo. The ECJ has confirmed that UK VAT law was in breach of the EU law principle of fiscal neutrality.
Today's announcement confirms the findings of successive UK courts for Rank's bingo claims totalling £253.4m including interest.
Rank is considering the implications of the ECJ decision with its advisors on its amusement machines claim for £30.8m including interest and will provide an update on this claim in due course.
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Further information
The Rank Group Plc
Philip Munn, investor relations 01628 504149
FTI Consulting
Marc Cohen 020 7831 3113
Notes
1) Rank Group's claims
Rank group has submitted several claims against HMRC pursuant to this litigation. The details of these claims can be found in Rank's half year results. The agreement Rank reached in 2010, which is referred to in Rank's results, does not cover the amusement machines claim.
To view previous announcements concerning Rank's VAT claims please visit
www.rank.com/investors.news.jsp
2) Fiscal neutrality
The European Union's law of fiscal neutrality requires that supplies of services that are the same or similar should be not be treated differently for VAT purposes. This position was confirmed in the European Court of Justice case Finanzamt v Linneweber (2005).
3) About The Rank Group Plc The Rank Group Plc is a leading European gaming and betting business, based in the UK and listed on the London Stock Exchange (RNK.L). Its principal activities are the operation of bingo clubs and casinos with complementary interactive gaming and bookmaking services.