Taxman 'faces 500m bingo bill UK Government

[BingoT]

Taxman 'faces 500m bingo bill
A Mecca bingo hall
Machines in Mecca bingo halls formed part of the claim

Rank Group - which runs casinos and Mecca bingo halls - has won a High Court case which its advisers say could cost the taxman up to 500m.

The court said Rank was entitled to 62m from value added tax overpaid on slot machines and bingo takings.

This follows some UK gaming and bingo machines being exempt from VAT while similar machines were subject to the tax - a disparity illegal under EU law.

The judge said that there were over 1,000 similar claims outstanding.

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[vinylweatherman]

Taxman 'faces 500m bingo bill
A Mecca bingo hall
Machines in Mecca bingo halls formed part of the claim

Rank Group - which runs casinos and Mecca bingo halls - has won a High Court case which its advisers say could cost the taxman up to 500m.

The court said Rank was entitled to 62m from value added tax overpaid on slot machines and bingo takings.

This follows some UK gaming and bingo machines being exempt from VAT while similar machines were subject to the tax - a disparity illegal under EU law.

The judge said that there were over 1,000 similar claims outstanding.

You do not have permission to view link Log in or register now.

Operators were also using this inconsistency in law to run 500 "Fruit Machines" despite the max LEGAL Jackpot at the time being 25

Oddly enough, it was the way the 500 games were PROGRAMMED that made them VAT exempt, and also exempt from being classed as "Fruit Machines" for the purposes of the maximum jackpot limit. In appearance to the player, there is NO DIFFERENCE between the VAT exempt and VATable 500 machines, hence the EU ruling about "similar services" having to be treated the same for VAT purposes. Naturally, this meant ALL of them now being VATable, but operators are now able to claim that the earlier VATable machines should NOT have been so UNTIL the date when ALL were made VATable, so hence the claim for refunds.

Bingo was the key, since by programming a machine to play a game of "bingo" (perhaps keno would be a more accurate description), but display the results as a 5 reel slot, they could both pay a max of 500, and be VAT free. It was feared that these 500 machines would become illegal overnight with the new gambling act, so operators got off rather lightly by simply having ALL these machines placed into the VAT net, meaning they do NOT face having to junk millions of pounds worth of hardware.