Ladbrokes owner GVC faces probe by UK tax authority

21 July 2020

Ladbrokes owner GVC has said it is "stunned" the UK's tax body is broadening a query into "potential business offending" associated with its former Turkish online gambling system.

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

GVC sold its Turkish company in December 2017.
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The business said it was co-operating with examination.
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GVC were notified of the development on Monday, however said it had yet to be informed of which of its subsidiaries were being investigated.
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It said it was "amazed by the decision to extend the investigation in this promotion code method and are dissatisfied by the yohaig code absence of clearness supplied by HMRC regarding the scope of its examination".
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"HMRC has not yet offered details of the nature of the historical conduct it is examining, with the exception of a referral to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation."

Section 7 states that a business organisation is guilty of an offence if an individual related to that company allurements another individual to obtain or maintain company, or to get or retain an advantage in the conduct of organization.

GVC's share rate was down 10.6% to 778.2 p on Tuesday following the news.
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The UK Gambling Commission told the BBC that it was "assisting" with the investigation.

HMRC declined to comment.

In July 2019, GVC was required to deny reports that it was still benefiting from its former Turkish subsidiary, stressing that it no longer had ties with the business.

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

"Furthermore, the board also categorically refutes suggestions that the group, or senior management, continue to benefit from any operations servicing the Turkish market."
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Liz Coleman, previous HMRC tax and expert of advisory firm Integrated Dispute Resolution, said the examination might go on for a long time.

"HMRC examinations are typically lengthy and considering the size of GVC it could be going on for several years, although if there's a targeted technique it might be shorter," she stated.

"They have to evaluate all the computer system records too, so this might add a lot more time."

The HMRC's choice comes just a week after Kenneth Alexander announced that he was stepping down as GVC's president.
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Mr Alexander took over in 2007 and supervise the company's acquisitions of competitors Ladbrokes Coral and Bwin.party.

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

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