NetEnt faces £8.2m tax payment
Casino supplier faces prospect of paying up to SEK88m (£8.2m) after an audit into its accounts between 2007 and 2010 discovers an alleged black hole.
Net Entertainment is facing the prospect of paying up to SEK88m (£8.2m) after an audit into the casino supplier’s accounts between 2007 and 2010 discovered an alleged black hole, the Swedish Tax Agency has declared.
In a “preliminary notice of tax assessment” NetEnt this morning said in a statement that the Tax Agency was “considering reassessing” its taxable income between 2007 and 2010 and imposing additional taxes of SEK 67,492,226 and tax surcharges of SEK 20,595,576, a total of SEK 88,087,802. The news sent its share price on the Swedish stock market down by more than 8% at the time of writing to SEK68.
The company immediately rebuffed the claim calling the Agency’s opinion “unfounded”, adding that it will appeal if a decision is made “in line with the tax body’s preliminary notice.
“Net Entertainment does not share the Swedish Tax Agency’s opinion and insists that the Company complies with applicable laws for taxation of the Company’s business,” it added.
The Agency has said it will announce its decision to be announced before the end of 2012. In the case where the Swedish Tax Agency maintain their view and decides in accordance with the preliminary notice, Net Entertainment will appeal the decision.
NetEnt’s revenues for the third quarter were affected by the Swedish Krona strengthening against the Euro, meaning the SEK122.5m figure “ while up 9.9% compared to the SEK111.4m recorded in Q3 2011 “ represents a 19.7% year-on-year increase if calculated in Euros.
Operating profit was up 6.1% year-on-year, from SEK34m to SEK36.1m, however profit after tax was flat at SEK30.8m (compared to SEK31m in Q3 2011).