Gaming company Playtech has reached an agreement with the Israeli tax authorities to make a payment of 28 million euros (£25 million) to the Israeli state.
The agreement follows the conclusion of an audit into the company’s accounts that covered the previous ten years financial details. Playtech, which is listed on the FTSE 250 index, announced that following the civil tax audit, which covered the years 2008 to 2017, the Israeli government had made what it described as ‘transfer pricing adjustments’ that related to Playtech’s business in Israel.
Under the terms of the agreement, Playtech will make the full payment, and in return, the Israeli authorities will not impose any penalty charges on the software developer. The company has also revealed that the additional tax charge will be recorded as an exceptional item in the 2018 accounts. It is expected that they will make the payment by the end of January.
The news of the deal with the Israeli government comes a few days after the company issued a warning of a significant impact on its earnings of up to 25 million euros (£22.5 million) in the current year as a result of new Italian gambling taxes. The 2019 budget, recently passed in the Italian senate, imposes significant tax rises on gambling activity. Despite the tax changes, Playtech’s expectation of an adjusted earnings figure of between £287.7 million and £323.6 million is unchanged.
Image sourced from Pixabay.
