Mr Green confident on Austria resolution
Operator taking cautious approach as it continues to fight multi-million pound tax bill through courts
Austria’s tax law is unconstitutional and Mr Green is confident of a positive outcome in its ongoing multi-million pound tax dispute, the firm’s CEO Per Norman has told eGaming Review.
In this morning’s Q3 results, Mr Green posted a heavy EBIT loss after booking a SEK81.6m (£6.3m) cost relating to an unsettled tax bill in Austria, despite continuing to challenge the bill in both Austrian and European courts.
“This is a precautionary measure to increase transparency and to reduce uncertainty going forward,” Norman said. “We are confident and we see signs that Austria will follow the re-regulation trend we see in Europe.”
Earlier this year it emerged that Mr Green had already made an £8.5m provision on taxes in Austria dating from January 2011 to August 2014.
But this new provision relates to the period since September 2014, and while the firm is keen to account for the risk it remains confident that a positive resolution will eventually be found.
The dispute centres on Austria’s 40% sales tax, with Mr Green arguing that it is not feasible for it to accurately account for players registered in other countries who may be playing in Austrian territory.
“”Tax law should be precise and if you don’t know what you are being taxed on, it makes it unconstitutional,” Norman said.
“It could take up to three to five years to resolve and to have that uncertainty for such a long period would damage the way people look at our company. We would be building up risk quarter by quarter, but now it will be the other way around,” he added.
Meanwhile in this morning’s Q3 presentation the firm also confirmed it would seek a listing on Stockholm’s NASDAQ exchange.
The firm is already listed on the AktieTorget exchange but said a more prominent listing would enable it to attract a broader base of investors.