Ladbrokes owner GVC faces probe by UK tax authority
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21 July 2020
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Ladbrokes owner GVC has said it is "stunned" the UK's tax body is widening a questions into "possible corporate angering" related to its former Turkish online betting system.

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

GVC offered its Turkish service in December 2017.

The company said it was co-operating with examination.

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

It said it was "amazed by the decision to extend the investigation in this way and are disappointed by the absence of clearness provided by HMRC as to the scope of its investigation".

"HMRC has not yet provided information of the nature of the historic conduct it is investigating, with the exception of a referral 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 offense if an individual associated with that business allurements another individual to obtain or retain service, or to get or keep an advantage in the conduct of service.

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 examination.

HMRC declined to comment.

In July 2019, GVC was required to reject reports that it was still gaining from its former Turkish subsidiary, stressing that it no longer had ties with business.
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"The board re-iterates the reality that subsequent to the disposal of the group's Turkish-facing service, GVC has no activity either straight or indirectly linked to the Turkish market," GVC stated.

"Furthermore, the board likewise unconditionally refutes recommendations that the group, or senior management, continue to take advantage of any operations servicing the Turkish market."
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Liz Coleman, former HMRC tax inspector and expert of advisory company Integrated Dispute Resolution, said the investigation could go on for a long time.

"HMRC investigations are typically prolonged and thinking about the size of GVC it might be going on for years, although if there's a targeted approach it might be shorter," she stated.

"They have to evaluate all the yohaig code computer records too, so this could add even more time."

The HMRC's decision comes simply a week after Kenneth Alexander announced that he was stepping down as GVC's president.
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Mr Alexander took over in 2007 and supervise the of rivals Ladbrokes Coral and Bwin.party.
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GVC reported a 22% drop in overall net earnings for the 2nd quarter this year due to the effect of the Covid-19 pandemic.
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