ladbrokes-owner-gvc-faces-probe

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Ladbrokes owner GVC deals with probe by UK tax authority

21 July 2020
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Ladbrokes owner GVC has stated it is "surprised" the UK's tax body is widening a questions into "prospective business angering" related to its previous Turkish online betting system.
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It said HM Revenue & Customs had broadened its probe into suppliers GVC used in Turkey to consist of other entities within its group.

GVC sold its Turkish company in December 2017.

The business said it was co-operating with investigation.

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GVC were notified of the development on Monday, however stated it had yet to be notified of which of its subsidiaries were being investigated.

It said it was "surprised by the choice to extend the examination in this promotion code way and are disappointed by the lack of clarity supplied by HMRC as to the scope of its examination".

"HMRC has actually not yet offered details of the nature of the historic conduct it is investigating, with the exception of a reference to section 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 offense if a person associated with that business allurements another person to obtain or maintain service, or to or retain a benefit in the conduct of organization.
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GVC's share cost was down 10.6% to 778.2 p on Tuesday following the news.
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The UK Gambling Commission told 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 benefiting from its previous Turkish subsidiary, worrying that it no longer had ties with business.

"The board re-iterates the truth that subsequent to the disposal of the group's Turkish-facing service, GVC has no activity either directly or indirectly connected to the Turkish market," GVC stated.

"Furthermore, the board also categorically refutes recommendations that the group, or senior management, continue to gain from any operations servicing the Turkish market."

Liz Coleman, previous HMRC tax inspector and expert of advisory company Integrated Dispute Resolution, stated the examination could go on for a long time.

"HMRC investigations are generally lengthy and considering the size of GVC it might be going on for years, although if there's a targeted method it could be much shorter," she said.

"They need to analyse all the computer records too, so this could include much more time."

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

Mr Alexander took over in 2007 and oversaw the business's acquisitions of competitors Ladbrokes Coral and Bwin.party.
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GVC reported a 22% drop in overall net earnings for the 2nd quarter this promotion code year due to the impact of the Covid-19 pandemic.
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