Sportech claims ‘final’ victory in £97m tax case
Operator still has a pending claim for interest payments which could more than double the payout
Sportech has successfully concluded its long-running legal battle with HMRC after the Supreme Court declined to hear the tax office’s appeal against an earlier court decision.
The ruling means Sportech – which already received £93m from HMRC on 29 June 2016 – will receive another £4m imminently.
The Supreme Court also ordered that HMRC pay costs, to be assessed at a later date.
“We are delighted that after nearly eight years, this case is now over and the Supreme Court has upheld the unanimous decision of the Court of Appeal,” Sportech chief executive, Ian Penrose, said.
Sportech’s VAT claim, which was first submitted in 2009, centred on whether its ‘Spot the Ball’ competition was a game of chance or skill and therefore eligible for VAT payments between 1976 and 1996.
The company added in a statement today: “This now, for Sportech, successfully brings this matter to a close.”
However, the operator has previously submitted an additional claim that could entitle it to receive compound interest on the overpaid VAT, which could more than double the amount it has already received.
This claim is on hold pending the outcome of Littlewoods Retail Ltd and others v HMRC, which is scheduled to be heard in the Supreme Court in July 2017.
Sportech has reason to be optimistic, with the Court of Appeals already ruling on the case that the taxpayer was entitled to interest on a compound basis on the overpayment of VAT.