13th Oct 2014 08:17
LONDON (Alliance News) - Online sports gaming and entertainment company Sportech PLC Monday said it has now lodged an application for permission from the Upper Tribunal to appeal a VAT repayment claim that last month was ruled in favour of UK tax authority HMRC.
The VAT repayment claim, in respect of the "Spot the Ball" game, was successfully determined in the group's favour by the First-Tier Tax Tribunal in March last year, but UK tax authority HMRC appealed the decision to the Upper Tribunal, which last month ruled in favour of HMRC, meaning Sportech stands to repay a GBP93.0 million tax gain back to the UK tax authority.
"Following this judgement, Sportech is required to repay the money received to HMRC in due course. The gain recognised in the 2014 interim financial statements will be reversed," Sportech said in a statement on September 16, which caused its shares to drop 22% on the day.
Sportech had been deciding whether to seek permission to appeal, and in a short statement Monday, said it has lodged an application for permission to appeal.
The company's shares were trading 2.4% higher Monday at 54.25 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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