UK bookmaker Ladbrokes has lost tax avoidance case
The UK Court of Appeal refused the Ladbrokes company complain related to tax avoidance payment of £71 million. The battle between Ladbrokes as a gambling operator and HM Revenue and Customs is about ten years long. It started in 2008 when Ladbrokes and accountancy company Deloitte had made a scheme for abusing a legal loophole in intention to avoid payment of corporate tax bill. The unlike thing was that the loophole was closed in the same year by the Government of UK.
Ladbrokes and Delloite made tax avoidance scheme
Delloite as an accounting expert advised his clients to establish new -transacting subsidiaries-within their groups. The larger groups have created a single one where the corporate tax charges were transferred and this unit generated losses of the company.
According to Deloitte advises, Ladbrokes the big bookmaker has integrated two of its companies into one subsidiary. The Travel Document Service and Ladbrokes International became into one subsidiary and arranged an artificial falling in the value of shares in the first company to create a loss in the other company in order to proved avoidance of tax payment.
The dispute between HM Revenue and Customs and Ladbrokes company
But later the inspection by HMRC in Ladbrokes not displayed any financial loss for a bookmaker and at the same time increase dispute between the two sides. The UK Government tax department urged the other companies that used the Delloite’s scheme to pay the tax they owed, in order not to be penalized. Nine of them had paid but Ladbrokes did not. The operator Ladbrokes accepted that aim to avoid payment of tax and did not have loses in 2008, but also noted that the company did not make avoidance of tax, according to the rules of HMRC in that time.
Last February the UK Tribunal Court allowed to Ladbrokes operator to appeal in the UK Court of Appeal.
The gambling operator’s appeal was rejected by UK Court of appeal and bid to rebate tax payment in the amount of £71 million.
GVC Holdings takeover Ladbrokes Coral
After Ladbrokes had lost the tax appeal case, become a proposal for taking over by Isle of Man, gambling online operator GVC Holdings.
Ladbrokes Coral will be takeover for up to £4 billion by GVC Holding, who is intending to create one of the largest gambling companies in the world. The agreement is expected to be realized by the end of first half of the year. This move for Ladbrokes Coral means the second consolidation among all those years of working.
For example, the Ladbrokes Coral group had been established by Ladbrokes company and Coral in 2016. The Ladbrokes Coral group currently manage the largest chain of betting shops in the UK.