Paddy Power Betfair challenges €55 million tax whammy

FTSE100 betting group Paddy Power Betfair (PPB) has confirmed that it will appeal its €55 million European tax charge imposed by the authorities of Germany and Greece.

The first charge of €40 million relates to Germany’s Hessen Fiscal Court rejecting PPB’s 2012 Betfair Exchange tax assessment.

The Hessen Court supports the German tax authority’s backdated review of Betfair Exchange transactions and wagering, demanding that PPB governance pay a €40 million cash charge plus accrued interest.

PPB’s European tax predicament is followed by Greek authorities demanding that PaddyPower.com pay €15 million in legacy tax charges accumulated during the period of 2012-2014, in which PPB’s online betting subsidiary was operating under the provisions of a Greek interim license.

PPB governance has moved to discredit the Greek €15 million tax charge, stating that the figure is significant multiple X times higher than revenues and earnings generated by Paddy Power Greek operations during the period in question.

Furthermore, the FTSE betting group states that it settled its all Greek arrears and tax liabilities in 2019.

With regards to Germany, PPB’s legal counsel has put forward an appeal with Hessen Court, further stating that German authorities need to clarify certain provisions of the €40 million cash charge.

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