HMRC are looking into allegations that the company wrongly charged VAT on children’s clothing, including Manchester United and Liverpool FC replica football kits. Tax is not applied to children's clothes.
These errors are understood to date back over a number of years to 2006.
In its annual report JJB Sports referred to a £5.3M provision associated with HMRC, relating to “a non-recurring matter which the group is currently discussing with HMRC”.
Given that the VAT should not have been charged, it seems unlikely that the £5.3M figure relates specifically to erroneous VAT on children's clothes.
However, if there is a VAT dispute with HMRC (relating to other matters) then it is possible that there is a "discussion" going on between HMRC and JJB over exactly what is owed to HMRC wrt VAT.
Tax does have to be taxing.
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