Administrative Court of Appeal Ruling Favors NetEnt in Tax Dispute
Swedish provider of solutions for the worldwide online casino industry NetEnt AB (publ) announced that a ruling from Sweden’s Administrative Court of Appeal was released concerning the company’s dispute because of the nation’s Tax Agency.
NetEnt’s previously filed appeal was authorized by the Administrative Court of Appeal plus an previous ruling by the Administrative Court was reversed. Beneath the ruling that is latest, the web casino supplier would receive a SEK1.8-million payment to pay for the legal expenses associated with the ongoing process. The organization revealed that , neither its profits, nor financial position would be impacted by any means.
NetEnt’s dispute aided by the country’s tax authority goes back to January 2013, once the provider announced that the Swedish Tax Agency had imposed additional taxes of about SEK94.4 million for the time between 2007 and 2010 after a tax audit have been carried out. Over the course of the legal dispute, the organization has reported the aforementioned sum being a contingent obligation.
The agency explained its decision with an improper and inadequate motivation associated with the transfer prices between web Entertainment NE AB, which is known to be based in Sweden, and its Malta-located subsidiary.
Following that, Sweden’s tax authority offered an alternative solution interpretation to NetEnt’s advisers on various agreements inked between several organizations in the gaming group that is swedish.