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£500 million bill for taxman
The operator of Mecca Bingo halls, Rank Group, has won a High Court case that could end up costing the tax man up to £500 million.
This particular case has ruled that Rank has overpaid VAT on some gaming machines, and is entitled to a £62 million rebate.
The ruling has become about after the government had ruled that some gaming and bingo machines are exempt from VAT, while others were taxed, this is agaisnt EU law. One bingo machine this relates to is the electronic game Mecca players enjoy between rounds of bingo.
HM Revenue and Customs could still appeal to decision, but it is thought there are over 1,000 similar claims that remain unresolved. HMRC said that it would soon issue guidance on how to reclaim any overpaid VAT.
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