Sportech PLC Sportech Successful in £97m VAT reclaim (3663R)
09 December 2016 - 2:47AM
UK Regulatory
TIDMSPO
RNS Number : 3663R
Sportech PLC
08 December 2016
8 December 2016
Sportech PLC ("Sportech" or "the Group")
Sportech Successful in GBP97m VAT reclaim
as Supreme Court refuses HMRC permission to appeal
Following the Court of Appeal's unanimous judgment in favour of
Sportech in relation to its GBP97m VAT repayment claim on the "Spot
the Ball" game, Sportech is pleased to announce that the Supreme
Court has refused Her Majesty's Revenue & Customs ("HMRC")
permission to appeal. This now, for Sportech, successfully brings
this matter to a close.
Sportech, which received GBP93 million from HMRC on 29 June
2016, expects to receive the balance of approximately GBP4 million
shortly. The Supreme Court ordered that HMRC pay costs, to be
assessed.
Ian Penrose, Chief Executive Officer, said "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".
Compound Interest
In 2009, Sportech submitted an additional claim that could
entitle it to receive compound interest, rather than simple
interest, on the amount of overpaid VAT. Whilst the quantum of the
claim is not yet known precisely, it could more than double the
total sum receivable to date.
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. In that case, the Court of Appeal
unanimously upheld the High Court's decision that the taxpayer was
entitled to interest on a compound basis on the overpayment of
VAT.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
Notes
The claim, which was first submitted in March 2009, was heard by
the First-tier Tribunal's Tax Chamber ("FTT") in October 2012. In
March 2013, it was announced that the FTT had found in Sportech's
favour.
Following the FTT's rejection of HMRC's subsequent application
for leave to appeal to the Upper Tribunal (Tax and Chancery
Chamber) ("UT"), HMRC then applied directly to the UT which granted
such permission. The claim was heard by the UT in April and May of
2014 and it was announced in September that the UT had ruled in
HMRC's favour.
In January 2015, Sportech announced that it had been granted the
right to appeal to the Court of Appeal. The hearing took place on 8
April 2016, following which on 4 May 2016 the Court of Appeal
judges found unanimously in favour of Sportech. On 13 May 2016,
HMRC sought permission from the Court of Appeal to appeal to the
Supreme Court, which was refused. Sportech announced on 6 June 2016
that HMRC had lodged an application to appeal directly to the
Supreme Court.
- ends -
For further information, please contact:
Sportech PLC 020 7268 2400
Ian Penrose, Chief Executive
Luisa Wright, Group General Counsel
Brunswick Group LLP 020 7404 5959
Mike Smith
Stuart Donnelly
sportech@brunswickgroup.com
Investec Bank PLC 020 7597 5970
Patrick Robb
Peel Hunt LLP 020 7418 8900
Dan Webster
This information is provided by RNS
The company news service from the London Stock Exchange
END
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