HMRC expands probe into Ladbrokes owner GVC
HMRC has expanded its investigation into Ladbrokes owner GVC’s former online business in Turkey.
The probe by the tax authority began in late 2019 and was initially directed at former third-party suppliers over processing of payments at the business GVC disposed of in December 2017.
GVC’s chief executive Kenny Alexander stepped down last week after the firm revealed coronavirus lockdowns had knocked first-half revenue by 11 per cent.
The long-time CEO spent 13 years at the helm of GVC, during which time he turned it into one of the world’s largest gambling companies.
GVC said it was cooperating with HMRC on the investigation but was “disappointed by the lack of clarity” over the scope of the probe.
In a statement the firm said: “HMRC yesterday informed the company that it was widening the scope of its investigation and is now examining “potential corporate offending” by an entity (or entities) within the GVC group which HMRC has not yet identified.”
“Both the company and GVC are surprised by the decision to extend the investigation in this way and are disappointed by the lack of clarity provided 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 reference to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation.”
The betting giant posted a massive 86 per cent plunge in net gaming revenues for the UK in the second quarter, as the pandemic forced the closure of its stores.