Mr Green makes £8.5m Austrian tax provision

Online casino operator Mr Green has set aside SEK108m (£8.5m) within its 2014 accounts as a provision for its ongoing tax dispute with Austrian authorities, despite vowing to contest the charge in Austrian and European courts.

The charge will be made against Mr Green’s fourth quarter results and will cover the self-assessment period of between January 2011 and August 2014. Mr Green remains in discussions with Austrian tax authorities over a partial payment plan.

Since 2011 Austria has attempted to enforce a tax rate on online casinos at 40% of their Austria-derived gross gaming win, a tax which is applied regardless of an operator’s licensing situation in the country or where its operations are based.

“We contest the tax liability and are hopeful that our objections will be given due consideration,” Mikael Pawlo, chief executive at Mr Green, said in a statement.

The operator is to file an appeal with the administrative courts and constitutional court in Austria and will request the European Court of Justice examine the case, considering the judgement to contravene Austria’s own constitutional legislation as well as EU directives.

Mr Green first pledged to fight the charge in October last year before stating the company would investigate any potential impact on earnings and cash flow.

This morning’s statement also confirmed the company still intended to pay a 2014 dividend totalling SEK46.6m (£3.7m), equivalent to SEK1.30 per share.