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Ladbrokes Owner GVC Faces Probe

Ladbrokes owner GVC faces probe by UK tax authority

21 July 2020

Ladbrokes owner GVC has stated it is “stunned” the UK’s tax body is broadening an inquiry into “possible business offending” related to its previous Turkish online gambling unit.

It said HM Revenue & Customs had broadened its probe into suppliers 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 notified of the advancement on Monday, however stated it had yet to be informed of which of its subsidiaries were being investigated.

It said it was “amazed by the choice to extend the investigation in this promotion code way and are disappointed by the absence of clearness provided by HMRC regarding the scope of its examination”.

“HMRC has not yet offered information of the nature of the historic conduct it is examining, with the exception of a reference to area 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under examination.”

Section 7 states that a commercial organisation is guilty of an if a person associated with that company bribes another individual to obtain or retain business, or to acquire or maintain a benefit in the conduct of company.

GVC’s share rate was down 10.6% to 778.2 p on Tuesday following the news.

The UK Gambling Commission informed the BBC that it was “helping” with the investigation.

HMRC declined to comment.

In July 2019, GVC was forced to reject reports that it was still taking advantage of its previous Turkish subsidiary, stressing that it no longer had ties with the company.

“The board re-iterates the fact that subsequent to the disposal of the group’s Turkish-facing company, GVC has no activity either directly or indirectly linked to the Turkish market,” GVC stated.

“Furthermore, the board likewise unconditionally refutes suggestions that the group, or senior management, continue to gain from any operations servicing the Turkish market.”

Liz Coleman, former HMRC tax inspector and expert of advisory company Integrated Dispute Resolution, said the examination might go on for a long time.

“HMRC investigations are generally prolonged and thinking about the size of GVC it could be going on for several years, although if there’s a targeted technique it could be much shorter,” she stated.

“They have to evaluate all the computer records too, so this promotion code might add much more time.”

The HMRC’s decision comes simply a week after Kenneth Alexander revealed that he was stepping down as GVC’s chief executive.

Mr Alexander took control of in 2007 and supervise the company’s acquisitions of competitors Ladbrokes Coral and Bwin.party.

GVC reported a 22% drop in overall net incomes for the second quarter this promotion code year due to the effect of the Covid-19 pandemic.

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