Flutter, the Irish-headquartered gambling group formerly known as Paddy Power Betfair, has paid nearly £40m (€46m) to tax authorities in Germany and Greece in respect of legacy tax assessments.
The two payments were included in Flutter's preliminary results for 2019. According to the results, the German tax issue relates to the Betfair Exchange, which operated in that market until 2012, while the Greek tax issue relates to paddypower.com's business in the country.
According to a note in the results, Flutter was provided with a decision by the Hessen Fiscal Court in Germany, which found against the group's appeal against a tax assessment in 2012. The court deemed that a tax liability of around €40m was payable, including accrued interest.
It had been reported in 2012 that Betfair exited the German market because of the country's introduction of a new turnover tax on stakes.
In a statement from 2012, Betfair said Germany's 5pc tax on sports betting stakes would make its exchange model "unviable".
The German exchange made up 4pc of Betfair's core 2012 revenues, contributing £6m before costs.
Separately, Flutter was issued with a Greek tax assessment for the financial years 2012, 2013 and 2014, relating to paddypower.com's interim licence.
The evaluation found the group was to pay €15m in taxes, which included penalties and interest.
In both the German and Greek tax cases, Flutter indicated in its results that the tax bills were multiples of the revenues generated in these countries during the periods.
Flutter stated in the results that it "strongly disputes the basis of these assessments".
It said it is confident regarding its grounds to appeal the decisions successfully. It has commenced the appeal process in both cases.
Pending the outcome of these appeals, Flutter paid the total Greek tax assessment, including the penalties and interest, and the €30.6m German tax assessment, during 2019, with late payment interest to be paid in due course.
Sunday Indo Business