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Ladbrokes owner GVC faces probe by UK tax authority
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21 July 2020
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Ladbrokes owner GVC has stated it is "shocked" the UK's tax body is expanding a query into "possible corporate upseting" related to its previous Turkish online betting unit.

It said HM Revenue & Customs had broadened its probe into suppliers GVC used in Turkey to include other entities within its group.
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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 advancement on Monday, however said it had yet to be notified of which of its subsidiaries were being examined.
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It stated it was "amazed by the choice to extend the examination in this promotion code way and are dissatisfied by the absence of clarity supplied by HMRC as to the scope of its investigation".

"HMRC has not yet provided details 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 a person associated with that company kickbacks another individual to acquire or keep business, or to obtain or retain a benefit in the conduct of service.

GVC's share price was down 10.6% to 778.2 p on Tuesday following the news.

The UK Gambling Commission told the BBC that it was "helping" with the investigation.

HMRC declined to comment.
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In July 2019, GVC was forced to deny reports that it was still benefiting from its previous Turkish subsidiary, worrying that it no longer had ties with the service.

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

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

Liz Coleman, former HMRC tax inspector and specialist of advisory company Integrated Dispute Resolution, stated the examination could go on for some time.

"HMRC examinations are usually prolonged and considering the yohaig code size of GVC it might be going on for years, although if there's a targeted technique it could be shorter," she said.
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"They have to evaluate all the computer records too, so this promotion code might include a lot more time."

The comes simply a week after Kenneth Alexander revealed that he was stepping down as GVC's primary executive.
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Mr Alexander took control of in 2007 and manage the business's acquisitions of rivals Ladbrokes Coral and Bwin.party.
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GVC reported a 22% drop in overall net profits for the 2nd quarter this promotion code year due to the effect of the Covid-19 pandemic.

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