Ladbrokes Owner GVC Faces Probe

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Ladbrokes owner GVC deals with probe by UK tax authority


21 July 2020


Ladbrokes owner GVC has stated it is "shocked" the UK's tax body is widening a query into "prospective corporate offending" related to its former Turkish online gambling unit.


It said HM Revenue & Customs had actually expanded its probe into providers GVC utilized in Turkey to include other entities within its group.


GVC offered its Turkish organization in December 2017.


The business said it was co-operating with investigation.


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GVC were informed of the advancement on Monday, however said it had yet to be informed of which of its subsidiaries were being examined.
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It said it was "shocked by the decision to extend the investigation in this method and are disappointed by the yohaig code absence of clearness provided by HMRC as to the scope of its examination".


"HMRC has not yet provided information of the nature of the historical conduct it is examining, with the exception of a reference to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation."
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Section 7 states that an industrial organisation is guilty of an offense if an individual related to that business kickbacks another person to get or retain business, or to acquire or retain an advantage in the conduct of company.
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GVC's share rate was down 10.6% to 778.2 p on Tuesday following the news.
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the yohaig code UK Gambling Commission informed the BBC that it was "helping" with the examination.


HMRC decreased to comment.
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In July 2019, GVC was forced to deny reports that it was still gaining from its former Turkish subsidiary, worrying that it no longer had ties with business.


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


"Furthermore, the board likewise unconditionally refutes suggestions that the group, or senior management, continue to benefit from any operations servicing the yohaig code Turkish market."
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Liz Coleman, previous HMRC tax inspector and consultant of advisory firm Resolution, stated the examination could go on for some time.


"HMRC investigations are normally lengthy and considering the size of GVC it might be going on for several years, although if there's a targeted approach it might be much shorter," she stated.
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"They have to analyse all the computer system records too, so this promotion code could include a lot more time."


The HMRC's choice comes just a week after Kenneth Alexander announced that he was stepping down as GVC's chief executive.


Mr Alexander took over in 2007 and manage the company's acquisitions of competitors Ladbrokes Coral and Bwin.party.


GVC reported a 22% drop in total net profits for the second quarter this year due to the effect of the Covid-19 pandemic.


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