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Such arrangements fall into the remit of Article 33 of the Principal VAT Directive, which was capable of being interpreted a number of ways and have only been clarified this year. The court papers suggest that Sports Direct set up a separate delivery company called Etail Services in , which it believed would be deemed a separate entity for VAT purposes and so increased the likelihood of online sales to EU buyers attracting VAT payable within the UK, rather than elsewhere. HMRC agreed to the structure but suggested Sports Direct confirm with foreign tax authorities that they agreed with this interpretation of where VAT would be due.
After French tax authorities wrote to Sports Direct in and several other countries began investigating similar structures, Sports Direct became concerned it would face a legal claim for unpaid VAT in those countries. This led to the replacement of Etail with Barlin Delivery, incorporated in and run as an entirely separate company. It strongly denies it was involved in any sort of tax avoidance or minimisation scheme.
It said that HMRC had agreed to the scheme and that the company had at all times sought to comply with European tax law. It said the issue was not that Sports Direct had sought to avoid tax, but whether tax had been paid in the correct jurisdiction, in light of changing interpretations of European VAT rules. Similar arrangements were being used by other international retailers, it said, after they had interpreted the rules in the same way, and in accordance with guidance from their own tax authorities. We accept that we should have contacted John Ashley directly prior to publication to give him the opportunity to respond. A union official suggested that these practices were illegal as they brought workers' earnings below the minimum wage.
The company responded by saying there were unspecified inaccuracies in the reports. The Information Commissioner's Office stated it was aware of "an incident from involving Sports Direct" and would "be making enquiries. The company announced on 16 December that it would change its name from Sports Direct International plc to Frasers Group plc effective from 17 December Sports Direct-branded stores exist under a franchising agreement in South Africa and the Middle East. In , Sumitomo Rubber Industries , a global tyre, sports goods, and industrial rubber products manufacturing company based in Kobe, Japan, filed for regulatory approval before the Philippine Competition Commission in connection with its planned acquisition of Dunlop-related wholesale, manufacturing, and licensing business from Sports Direct.
The Philippine Competition Commission approved the regulatory filing for the said acquisition. The acquisition allowed Sumitomo Rubber to consolidate the Dunlop brand across various products including sports goods worldwide. On 10 August , the House of Fraser entered administration. In February the group acquired Sofa. In December , Debenhams announced it was going into liquidation , putting 12, jobs in UK stores at risk unless the administrators could find buyers for all or parts of the business.
Frasers Group was reported to be in talks to acquire Debenhams,    though it was later reported that Ashley was mainly interested in using empty Debenhams stores to expand his other chains, including House of Fraser, Sports Direct and Flannels; taking 'vacant possession' would avoid redundancy costs for existing staff. In January , it was announced that the Jenners House of Fraser store in Edinburgh was closing for good and jobs would be lost.
From Wikipedia, the free encyclopedia. British sports-goods retailer. Trade name. Traded as. Operating income. Net income. Sports Direct. Archived from the original on 5 February Retrieved 1 October — via Wayback Machine. Companies House. Retrieved 10 November Frasers Group. Retrieved 1 March Retrieved 14 October ISSN The Guardian. Retrieved 7 November BBC News. Retrieved 10 February The Daily Telegraph. The Times. Retrieved 23 May Archived from the original on 12 November Retrieved 21 March Please note that we may share your email with the company to verify your order.
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