Paddy Power boosted by tax gain
PADDY Power was boosted yesterday after it received a A$36m (€26m) refund from the Australian tax office.
The one-off payment came after the Australian courts ruled the Irish firm's two subsidiaries in the country, Sportsbet and IAS, were entitled to be refunded on tax they paid to the Australian exchequer between 2005 and 2009.
Approximately half of the gain is expected to be received as a cash refund later this year and half as a credit against Goods and Services Tax (GST) payable in future years, Paddy Power said.
"The Federal Court in Australia ruled in favour of Sportsbet's and IAS's interpretation of the relevant GST legislation and the Australian Tax Office has confirmed that it does not intend to appeal the court's decision.
"The relevant legislation was amended in 2010 so the judgment does not impact future periods," the company added.
Paddy Power closed down 1.15pc at €32.62 after being caught up in the wider market turmoil which badly affected global stocks yesterday.