There aren’t many companies or individuals out there that will generally say that they enjoy paying taxes. However, there are some points during the year in which individuals happily receive a check back from the government for overpaying taxes.
Usually the sum received is not of very large proportions and simply provides a little more lining in the receiver’s pocket. On the part of Rank Group, the owners of Mecca Bingo among other land-based and online gambling sites in the UK, this is not the case. This year Rank Group is requesting repayment of $42 million in overpaid taxes.
A slight change in British gambling laws through a tribunal ruling regarding taxes on certain types of amusement machines has rendered a large chunk of change that Rank Group recently paid in taxes claimable.
Internet bingo in the UK proves to be a booming business but as it is legal, it is well regulated and heavily taxed. Despite the taxing it is still worth it for the company to run such business and now, if all goes well, it will receive a large sum of its paid taxes back. Rank expects to receive its first payment during the first quarter of 2010. The claim was made in references to taxes paid between 2002 and 2005 and follows a separate ruling in Rank’s favor of the application of bingo taxes.
As the government has taken such a substantial amount in as opposed to what was necessary on behalf of Rank, it is obliged to pay it back. Tax authorities will appealing the relevant decisions in a hearing in April of this upcoming year.