Betting group Ladbrokes Coral has been hit hard by the Court of Appeal in the UK, as the judicial body ruled against the bookmaker in its £71 million tax case.
The dispute between Ladbrokes and the UK government has been ongoing since 2008, when HMRC ruled that Ladbrokes and its accountant Deloitte took part in a corporate tax scheme that exploited a loophole. That loophole saw Labrokes benefit to the tune of £71 million in taxes, and the government sought the money. The retail and online group paid the fee, but then tried to get the money back.
The case went to court, but was rejected last year by the UK Tribunal Court. The company appealed, and this decision is the latest blow for the group.
A Ladbrokes spokesperson spoke about the decision, noting: "We note the court ruling. This was a case regarding taxes already paid and accounted for, so while the case may have been given against us, it has no bearing on our numbers."
A HMRC spokesperson also weighed in, saying: "We are pleased that the Court of Appeal supports HMRC's view that Ladbrokes were attempting to avoid corporation tax. Avoidance schemes like this just don't work and HMRC will always take firm action against them. HMRC wins nine out ten avoidance cases we take to court."