Ladbrokes to pay tax avoidance penalty

ladbrokes

Ladbrokes Coral and GVC could close the deal soon.

The British company lost an appeal over a tax avoidance case.

UK.- Ladbrokes recently lost an appeal over a tax avoidance case that establishes that the company has to pay a £71 million tax charge. The UK Tax Tribunal settled that the company exploited a 2008 tax loophole.

Back in 2008 Ladbrokes along with Deloitte, its auditor, violated a tax loophole that consisted of loans between third parties and corporations with the intention of minimising the tax bill for the entire year. The British company stated that the arrangements were made with the intention to avoid taxes, and that the rules didn’t apply to them. Director General of Compliance at the UK Revenue & Customs (HMRC) Jennie Granger, said: “Ladbrokes would have been better off just paying the tax but instead they pursued this lengthy legal dispute with HMRC.”

“Avoidance schemes like this just don’t work and HMRC will always take firm action against them. The bookie gambled and lost when the odds of success could not have been lower,” the director added.