Ladbrokes Owner GVC Faces Probe
Ladbrokes owner GVC faces probe by UK tax authority
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21 July 2020
Ladbrokes owner GVC has stated it is "surprised" the UK's tax body is widening a query into "potential corporate angering" related to its previous Turkish online gambling system.
It said HM Revenue & Customs had expanded its probe into suppliers GVC used in Turkey to consist of other entities within its group.
GVC offered its Turkish company in December 2017.
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The business said it was co-operating with investigation.
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GVC were notified of the development on Monday, but stated it had yet to be informed of which of its subsidiaries were being examined.
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It stated it was "amazed by the decision to extend the examination in this promotion code method and are dissatisfied by the lack of clarity offered by HMRC regarding the scope of its investigation".
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"HMRC has actually not yet supplied details of the nature of the historic conduct it is investigating, with the exception of a recommendation to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under examination."
Section 7 states that an industrial organisation is guilty of an offence if an individual connected with that business bribes another person to obtain or maintain organization, or to acquire or retain a benefit in the conduct of service.
GVC's share rate was down 10.6% to 778.2 p on Tuesday following the news.
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The UK Gambling Commission informed the yohaig code BBC that it was "assisting" with the investigation.
HMRC declined to comment.
In July 2019, GVC was forced to reject reports that it was still gaining from its previous Turkish subsidiary, stressing that it no longer had ties with the business.
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"The board re-iterates the truth that subsequent to the disposal of the group's Turkish-facing company, GVC has no activity either directly or indirectly linked to the Turkish market," GVC stated.
"Furthermore, the board also categorically refutes tips that the group, or senior management, continue to benefit from any operations servicing the Turkish market."
Liz Coleman, previous HMRC tax inspector and expert of advisory firm Integrated Dispute Resolution, said the yohaig code could go on for some time.
"HMRC examinations are generally prolonged and thinking about the size of GVC it might be going on for several years, although if there's a targeted approach it could be much shorter," she said.
"They need to analyse all the computer records too, so this promotion code might add much more time."
The HMRC's choice comes just a week after Kenneth Alexander announced that he was stepping down as GVC's president.
Mr Alexander took over in 2007 and oversaw the company's acquisitions of rivals Ladbrokes Coral and Bwin.party.
GVC reported a 22% drop in overall net earnings for the yohaig code 2nd quarter this promotion code year due to the effect of the Covid-19 pandemic.
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