Greece seeks to collect €200 million in taxes from GVC.
The Greek tax department has slapped a massive bill on betting giant GVC Holdings, demanding almost €187 million in back taxes. The company, which owns brands like bwin, partypoker, and Sportingbet, has been hit with this bill during the expensive takeover of competitor Ladbrokes Coral.
The amount relates to Sportingbet's past business dealings in Greece. GVC Holdings has owned the British betting company since 2013. The company has announced plans to seek legal help and fight this decision. It believes the claim surpasses Sportingbet's revenue at that time.
Davy Research, market analysts, speculate that the Greek tax authorities could have based their calculations on more than just the company's earnings. However, to avoid any disruption to their ongoing operations in Greece, GVC is making arrangements to pay the disputed amount. They'll pay nearly €8 million per month for two years, depending on the outcome of legal action:
This settlement [with the Greek tax office] does not mean an admission of guilt by the company and it will try to get back these payments.Statement from GVC Holding
This financial setback could not have come at a worse time for GVC. They're engaged in advanced talks to take over rival Ladbrokes Coral. If regulatory reforms come through, GVC is prepared to buy the British bookmaker for a price between £3.2 and £4 billion. Though no deal has been finalized, the companies seem to have agreed on the terms. The tax issues could force renegotiations, though. As a publicly traded company, Ladbrokes must ensure proper probing of its potential business partner. The Ladbrokes board, however, stressed in a statement that the deal remains secure, despite the Greek demands.
The Ladbrokes Coral board thinks that this [tax demand] is not a game-changer and will be resolved in the upcoming years.Davy Research, capital markets analysts
Shares of both GVC and Ladbrokes Coral lost around 4% following the announcement.
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Source: www.onlinecasinosdeutschland.com
