Well, following their case of unfair taxation under EU laws on fiscal neutrality, The Rank Group announced it has today received £59.1 million from the UK Government. Initially reports mentioned they expected to get £36 million back from the HMRC, so I’m wondering if the amount they received is for a number of years worth of payments rather than just the one they first appealed for?
Anyway, it’s good news for Rank, but they can’t spend it just yet, the HMRC will be taking the case to the appeal courts in January 2009, and if they find in favour of the HMRC, then the Rank Group will have to pay the money back, with interest. Given the way interest rates are at the moment, that shouldn’t amount to too much extra (sarcasm.) Shares prices have started going up with the news, although the money will not be new profit but go to reducing the group’s net debt, should they be allowed to keep it.