29th Jun 2016 08:25
LONDON (Alliance News) - Sportech PLC on Wednesday said it has received GBP93 million from HM Revenue & Customs relating to the VAT repayment claim for its 'Spot the Ball' game.
The gaming company said it is awaiting a decision from the UK Supreme Court as to whether HMRC has been granted the right to appeal against the Court of Appeal's decision in favour of Sportech. The balance of around GBP4 million will be paid to Sportech in the event of "a successful final determination", it said.
Back in 2009, Sportech asked HMRC to repay more than GBP40 million in VAT that the company claimed it had overpaid on its Spot the Ball game between 1979 and 1996. It later took the case to a tribunal which initially found in its favour and said it was owed GBP95 million including simple interest.
However, HMRC, which had paid the company GBP93 million, then successfully appealed with an upper tribunal in September 2014, and Sportech was required to repay the money to the taxman.
Sportech then sought leave to appeal to the UK's Court of Appeal which, in May, ruled in favour of Sportech, before refusing HMRC permission to appeal on this ruling to the Supreme Court.
Earlier this month, HMRC then applied directly through the Supreme Court.
Sportech noted on Wednesday that if the Supreme Court grants HMRC the right to appeal and in the event the Supreme Court overturns the Court of Appeal's decision, Sportech will need to repay the money it has received.
Shares in Sportech were trading up 5.5% at 58.00 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
SPO.L