UK betting giant Ladbrokes has last a tax case with HM Revenue and Customs service, as the publicly traded company was found to have avoided taxes due and will lose £54 million in tax.
The ruling was made by the Firtst-tier Tribunal, who ruled that Ladbrokes along with their accounting firm Deloitte used a tax loophole to have a subsidiary group Travel Document artificially cause a drop in share price, which then allowed Ladbrokes to take a loss for the year and avoid having to pay taxes. Ladbrokes also has three other cases pending worth up to £112m in taxes avoided.
Commenting on the ruling HMRC Director of General Business Tax Jim Harra said, "Avoidance just doesn't pay - we win around 80% of cases taxpayers choose to litigate and many more concede before litigation. We will uncover the avoidance schemes and contrived structures designed to minimise tax and we will challenge them."