Euroslot-JUL-AUG09-PG06-11:Layout 1 02/07/2009 09:18 Page 10
INDUSTRY NEWS www.euroslot-online.com
Lo-Q in Seville deal Rank Awarded Refund
L
o-Q plc, the leading supplier of virtual queuing systems to theme
parks, has signed an agreement with Parque Isla Mágica for the I
n a significant judgment last month, the UK High Court has upheld
the earlier decision of the VAT Tribunal and ruled that the Rank
installation of its Text-Q ride reservation system. The Spanish Parque Group Plc (Rank) is entitled to a refund from HM Revenue &
Isla Mágica is the first theme park outside of the UK to sign up to Customs (HMRC) for VAT overpaid on games of interval bingo and
Text-Q and takes advantage of the new multi-language capability. certain gaming machines. In a strong decision in favour of Rank, the
The Text-Q system allows mobile phone users to reserve their High Court stated that there was no objective justification for the
place in line on their preferred rides, from anywhere in the park. differential in tax treatment by HMRC which breached the European
The ride time, calculated by the Text-Q system, is advised using the Community principle of fiscal neutrality.
SMS service so Text-Q users are given more time to enjoy other The High Court confirmed that the principle of fiscal neutrality
areas of the park while they wait. It will be available for use on which prevents treating similar goods or services differently for VAT
eight of the park's rides. The Isla Mágica amusement park was is a fundamental corner stone for equality in fiscal treatment.
constructed on the former grounds of the Expo '92 World's Fair in Tony McClenaghan, senior indirect tax partner at Deloitte, who
the heart of Seville and was opened in 1997 and attracts around advised Rank, said: "This is a landmark decision endorsing one of
800,000 visitors a year. the most important principles of Community law, fiscal neutrality.
CK Foo, Sales Manager of Lo-Q said, "We look forward to enhancing This underpins fair and effective tax policy. It remains to be seen
Parque Isla Mágica guests experience and getting them out of line will whether HMRC will appeal the decision, however, the decision of
enable them to enjoy the parks seven themed areas, glorious grounds both the VAT Tribunal and the High Court are clear and unequivocal
and many park offerings. Text-Q is adaptable to all queue line and we would expect the Court of Appeal to share this view.
scenarios and we hope to see this product in new markets soon." "The same principles should apply to any taxpayer which has paid
The installation of Text-Q at Parque Isla Mágica is due to be VAT on the income from these activities. Other organisations in the
completed during July 2009. The agreement also covers technical leisure industry should consider their own grounds to submit claims
assistance, training and support along with software updates and for overpaid VAT and interest to HMRC following the guidance laid
maintenance. down by the High Court in this ruling. "
The interval bingo appeal concerned identical supplies of bingo
games, one played under s.14 of the Gaming Act 1968 and one
played under s.21 of the Gaming Act 1968, the former being subject
to VAT, and the latter being exempt from VAT. It was common
ground that the games were identical and therefore HMRC failed to
persuade the High Court that there was any objective basis for the
differential in tax treatment. This resulted in a breach of fiscal
neutrality.
The gaming machines appeal, referred to as the "Slots appeal",
concerned supplies of certain gaming machines which were subject
to VAT, and other similar gaming machines, which were comparable,
which were treated as exempt from VAT. This also caused a breach
of fiscal neutrality and distortion of competition. HMRC amended
the law in 2005, to tax all of these gaming machines.
HMRC has until 29 June 2009 to appeal this decision to the Court
of Appeal.
EAG numbers swell
A
MG, Cashpoint, Playsafe Monitoring, JNC
Sales, The United Distributing Company
and Whitehouse Leisure have all confirmed
their commitment to the BACTA , EAG Expo,
being held at the ExCel London Exhibition
Centre
26 - 28 January 2010. They join a growing list of companies who have
committed, including Bandai Namco, Crown, Electrocoin, Harry Levy, MDM
Leisure and Sega.
10
JULY/AUGUST 2009
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36