De Vere ordered to pay £9.3m in VAT
De Vere, the company that owns the world famous Belfry hotel, is facing a £9.3m exceptional charge for unpaid VAT on subscriptions in its leisure and golf business.
Link: Landmark victory sets VAT precedent
The news came following a review by Customs & Excise into De Vere’s tax treatment of payments.
In the review, which began in July 2000, Customs found that the Warrington company, a De Vere subsidiary operating the Greens and Village Leisure brands, had not charged its customers VAT on subscriptions to its golf and leisure businesses between April 1997 and December 1999. The company had been treating the payments as VAT exempt.
De Vere said yesterday it had decided to make a provision of £9.3m in its 2003 accounts which it would use to pay the charge. It added it would most likely make back-dated payments. The group must pay £7m plus interest, offset by £2.2m of corporation tax credits.