Shares in both Centrebet International Limited and Paddy Power, went up on the Stock Exchange, after both of the Australian divisions of these companies bet against the tax man and won. It is not often that companies pull-off legal one-up-manship over the tax man!
Centrebet shares went up by a whopping 8% – actually a little bit more, on the ASX:CIL in Sydney; while Paddy Power saw their shares increase by 0.51% to €33.21 per share in London. This happened after the ATO (Australian Tax Office) declared it does not intend to appeal against a decision by the Federal Court. The ruling relates to overpaid goods and services tax (GST). Centrebet claimed a refund of AUD$90.7million while Paddy Power a rival operator, new to Australia in their role as owner of Sportsbet and IAS – received $36million.
Refunds will be paid out later this year, in varying cash amounts as well as credits against GST in the future. This landmark ruling will not take place again, as the relevant legislation has now been amended.
In 2009, Mecca Bingo parent company – Rank, also won a landmark court decision against the British tax man, when they were awarded £59 million in the case of VAT; this matter was upheld by the European High Courts, after it was found that they had overpaid VAT on interval bingo. By the way interval bingo can be found at their online bingo site – look for a game called Cash Bingo.
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