And if not, why not?
Bookmakers are in line for a £1bn tax rebate after a court ruled they were wrongly charged VAT on revenue from controversial fixed-odds betting terminals (FOBTs).
The finding, in a case brought against HM Revenue & Customs by the high-street bookmaker Betfred, will be seen as a major victory for an industry reeling from the government’s decision earlier this year to slash the maximum bet on FOBTs from £100 to £2.
A tax tribunal ruled that collecting VAT on FOBTs between 2005 and 2013 had “breached the principle of fiscal neutrality” because similar roulette-style games played in casinos and online were exempt from the tax.
Note what the ruling is. That £1 billion of tax already paid is not righteously due under current law. Therefore that calculation of what the tax gap is must be reduced, no? For it is – supposedly – the amount righteously due but not paid, something which must clearly be offset by that not due but paid.
And how much other tax is being over collected?