Sportech tax case faces yet another appeal
London-listed firm sees share price dip following latest legal hurdle
Sportech’s bid for a ?97m tax refund was delayed again today after the firm announced Her Majesty’s Revenue & Customs (HMRC) has asked for the Supreme Court to review the case.
According to the London-listed firm, it will file its Notice of Objection to such application by next Monday, and has been advised it should expect to hear by the autumn whether the Supreme Court will hear the case.
The Court of Appeals has already refused the HMRC’s original request for an appeal, meaning the Supreme Court of the United Kingdom marks the tax authority’s last chance to have the ruling overturned.
The claim, which was first submitted in 2009, centred on whether Sportech’s Spot the Ball competition was a game of chance or skill and therefore eligible for VAT payments between 1976 and 1996.
The First-tier Tribunal’s Tax Chamber ruled in 2013 it was indeed a game of chance and ordered HMRC to refund ?97m – a sum equal to half Sportech’s market cap – but the case has seen a litany of appeals since.
Sportech, which operates the Football Pools as well as providing tote equipment and software, saw share prices down 4.65% to 70.5p on the London Stock Exchange this morning.