Ladbrokes owner GVC faces probe by UK tax authority

21 July 2020

Ladbrokes owner GVC has stated it is "surprised" the UK's tax body is expanding an inquiry into "potential corporate offending" related to its former Turkish online gambling system.

It stated HM Revenue & Customs had actually broadened its probe into providers GVC utilized in Turkey to include other entities within its group.

GVC offered its Turkish service in December 2017.

The company said it was co-operating with examination.

Genting Casinos closures put 1,600 jobs at danger

GVC were notified of the advancement on Monday, however said it had yet to be notified of which of its subsidiaries were being investigated.

It said it was "surprised by the choice to extend the investigation in this promotion code method and are disappointed by the yohaig code lack of clarity offered by HMRC regarding the scope of its examination".

"HMRC has not yet offered details of the nature of the historic 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 examination."

Section 7 states that a business organisation is guilty of an offence if a person connected with that business bribes another individual to obtain or retain company, or to obtain or keep a benefit in the conduct of service.

GVC's share price 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 yohaig code investigation.

HMRC declined to comment.

In July 2019, GVC was required to reject reports that it was still gaining from its previous Turkish subsidiary, worrying that it no longer had ties with the organization.

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

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

Liz Coleman, former HMRC tax inspector and expert of advisory firm Integrated Dispute Resolution, stated the examination could go on for some time.

"HMRC examinations are usually lengthy and considering the yohaig code size of GVC it might be going on for years, although if there's a targeted approach it might be much shorter," she stated.

"They need to analyse all the computer records too, so this promotion code might add much more time."

the yohaig code HMRC's decision comes simply a week after Kenneth Alexander announced that he was stepping down as GVC's president.

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

GVC reported a 22% drop in overall net earnings for the 2nd quarter this year due to the effect of the Covid-19 pandemic.

Gambling loophole 'must be shut down'

5 June 2020