PokerStars reaches ?5.9m settlement in Italian tax dispute
Parent company Amaya agrees settlement figure with Italian tax authorities following claims of fraud and tax evasion
Amaya has agreed to pay Italian tax authorities ?5.9m after the country’s financial police had accused its PokerStars subsidiary of committing fraud and tax evasion.
In March last year, Italy’s Guardia di Finanza alleged PokerStars had used Rational Group subsidiary Halfords Media Italy to hide away undeclared revenues, estimated to be worth more than ?300m, between 2009 and 2014.
At the time, police said its investigation into transactions between Halfords Media and PokerStars showed the company had “wilfully eroded” its Italian tax base and shifted income generated in the country to more tax advantageous jurisdictions of Isle of Man and Malta, thus avoiding tax of approximately ?85m.
In a statement this morning, Amaya said the agreement represented a “final settlement of the matter” and that the payment was inclusive of all amounts owing to Italian authorities for the periods at issue.
The Canadian gaming giant also said that as part of the settlement, PokerStars did not owe any additional taxes for the 2014 tax year.
The news comes just weeks after Amaya said it would appeal an “absurd” ?580m fine imposed by a Kentucky court for bets taken from players in the state between 2006 and 2011.