Mr Green still fighting Austrian tax bill

Listed gaming operator Mr Green & Co is putting aside SEK 108 million (£11.5m) from its 2014 accounts in case it loses its Austrian tax dispute. Mikael Pawlo, outgoing CEO of Mr Green & Co, commented: “We contest the tax liability and are hopeful that our objections will be given due consideration.”

While Mr Green Ltd operates from Malta and is subject to a Malta gaming license issued by the Lotteries and Gaming Authority of Malta, since 2011 Austria has enforced legislation requiring online casino companies to be taxed at a rate of 40 per cent on their Austrian sales. The law covers online casino games regardless of whether the company holds a license in Austria or not, or whether the operations are conducted from Austria or another jurisdiction.

Mr Green is engaged in ongoing discussions with the Austrian tax authority in relation to such aspects as a partial payment plan, at the same time as Mr Green and the company’s expert advisers have several objections to the legislation and contest the liability to pay tax in its entirety on multiple grounds. Mr Green will file an appeal with administrative courts and the constitutional court in Austria, and request that the European Court of Justice examine the case. Mr Green Ltd also intends to bring the matter to the European Commission for examination.

The company continues to operate in Austria but is reducing its market investments. As of September 2014, Mr Green’s Austria-related gaming sales are entered in the tax returns on a monthly basis in a total tax amount of zero SEK, something that was not possible to do for the self-assessment period.