Ladbrokes owner GVC deals with probe by UK tax authority

21 July 2020

Ladbrokes owner GVC has stated it is "stunned" the UK's tax body is broadening a questions into "possible business offending" associated with its former Turkish online betting system.

It stated HM Revenue & Customs had actually broadened its probe into providers GVC utilized in Turkey to consist of other entities within its group.

GVC sold its Turkish company in December 2017.

the yohaig code business stated it was co-operating with investigation.

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GVC were informed of the yohaig code development on Monday, however stated it had yet to be informed of which of its subsidiaries were being examined.

It stated it was "surprised by the choice to extend the examination in this way and are disappointed by the absence of clearness offered by HMRC as to the scope of its examination".

"HMRC has actually not yet provided information of the nature of the yohaig code historical 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 an industrial organisation is guilty of an offence if an individual associated with that company kickbacks another individual to obtain or maintain organization, or to get or maintain an advantage in the conduct of organization.

GVC's share cost 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 deny reports that it was still gaining from its previous Turkish subsidiary, worrying that it no longer had ties with business.

"The board re-iterates the fact that subsequent to the disposal of the group's Turkish-facing organization, GVC has no activity either directly or indirectly linked to the Turkish market," GVC said.

"Furthermore, the board likewise unconditionally 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 consultant of advisory company Integrated Dispute Resolution, stated the examination could go on for some 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 approach it might be shorter," she stated.

"They need to analyse all the computer records too, so this might include a lot more time."

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

Mr Alexander took control of in 2007 and oversaw the business's acquisitions of rivals Ladbrokes Coral and Bwin.party.

GVC reported a 22% drop in overall net revenues for the 2nd quarter this year due to the impact of the Covid-19 pandemic.

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