Ladbrokes loses HMRC appeal, asked to pay £71m tax charge
Ladbrokes has lost an appeal to HM Revenue & Customs (HMRC) in the UK to reverse a ruling over a bogus tax avoidance scheme and has ordered to pay £71 million (€83.7 million/$88.4 million).
Last year, HMRC won a judgment against Ladbrokes worth £54 million after the company admitted to arranging a deal between two of its divisions, resulting in a share price drop in one of the operations. This allowed the other division to claim a tax loss.
The deal, supervised by Deloitte, exploited a 2008 tax loophole that related to loans between companies and third parties.
HMRC initiated legal action against the 100 firms that gained due to this loophole, including Ladbrokes, which appealed against the initial ruling and claimed no wrongdoing on its part.
However, the Upper Tribunal of the Tax and Chancery Chamber did not agree with the claim and dismissed each of Ladbrokes’ three arguments, directing the company to pay HMRC a total of £71 million.
HMRC compliance director Jennie Granger said:
“Ladbrokes would have been better off just paying the tax but instead they pursued this lengthy legal dispute with HMRC.
“Avoidance schemes like this just don’t work and HMRC will always take firm action against them.
“The bookie gambled and lost when the odds of success could not have been lower.”
Kai started working in the Gaming Industry in 2001 when he managed a Horse Betting Shop in Germany. With the more and more upcoming needs for Sportbetting Solutions for the German speaking market he moved in 2003 in Malta where he built up TopSportWetten, one of the first Sportbetting operators working from Malta with a Remote Gaming License.
In 2005 he moved to a new venture and joined the newly formed Team of BetUnited, a Company that had the goal to target the German speaking online market with a full portfolio of Betting, Poker, Casino and Games of Skill.
In 2007 he left BetUnited and concentrated on helping new Companies coming to Malta to obtain a remote gaming license and establish operators on the island.
In 2011 he founded Simka Consulting to combine his knowledge in the operational part of the IGaming Business with the Marketing expertise of Simona.
- TopSportWetten - Managing Director and Key Official
- Bet United - Managing Director and Key Official
- MMBet - Managing Director and Key Official
- Olympia Bet - Managing Director and Key Offical
- Production Planning and Project Manager - Infratec Pro Ltd.
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