Ladbrokes owner GVC deals with probe by UK tax authority

21 July 2020

Ladbrokes owner GVC has said it is "stunned" the UK's tax body is expanding a query into "potential corporate angering" associated with its former Turkish online gaming system.

It said HM Revenue & Customs had actually broadened its probe into suppliers GVC used in Turkey to consist of other entities within its group.

GVC offered its Turkish company in December 2017.

The business stated it was co-operating with examination.

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GVC were notified of the development on Monday, but said it had yet to be informed of which of its subsidiaries were being examined.

It said it was "amazed by the choice to extend the examination in this way and are dissatisfied by the absence of clarity supplied by HMRC regarding the scope of its examination".

"HMRC has not yet offered information of the nature of the yohaig code historical conduct it is investigating, with the exception of a referral to area 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation."

Section 7 states that a commercial organisation is guilty of an offence if a person connected with that business kickbacks another person to acquire or keep business, or to obtain or keep a benefit in the conduct of organization.

GVC's share rate was down 10.6% to 778.2 p on Tuesday following the news.

The UK Gambling Commission informed the BBC that it was "helping" with the investigation.

HMRC declined to comment.

In July 2019, GVC was forced to deny reports that it was still taking advantage of its former Turkish subsidiary, worrying that it no longer had ties with the organization.

"The board re-iterates the reality that subsequent to the disposal of the group's Turkish-facing organization, GVC has no activity either straight or indirectly linked to the Turkish market," GVC stated.

"Furthermore, the board likewise unconditionally refutes ideas that the group, or senior management, continue to gain from any operations servicing the Turkish market."

Liz Coleman, previous HMRC tax inspector and consultant of advisory company Integrated Dispute Resolution, said the investigation could go on for a long time.

"HMRC examinations are normally prolonged and considering the size of GVC it could be going on for years, although if there's a targeted approach it might be shorter," she said.

"They have to evaluate all the yohaig code computer system records too, so this promotion code could include much more time."

The HMRC's choice comes simply a week after Kenneth Alexander revealed that he was stepping down as GVC's chief executive.

Mr Alexander took control of in 2007 and manage the business's acquisitions of competitors Ladbrokes Coral and Bwin.party.

GVC reported a 22% drop in total net profits for the 2nd quarter this promotion code year due to the yohaig code effect of the Covid-19 pandemic.

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