GVC Holdings faces Greek tax drama

GVC Holdings faces Greek tax drama

Tuesday, January 30, 2018 Posted by Luke Massey
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The online gambling group will contest a €187 million tax charge

FTSE online gambling group GVC Holdings will appeal its €187 million tax charge imposed by the Greek Audit Centre for Enterprise.

The Greek business tax authority has demanded that GVC pay €187 million in taxes relating to its Greek subsidiary’s performance for the auditing periods of 2010 and 2011.

At the time, the Greek subsidiary was operated by Sportingbet Plc, prior to the online bookmaker being acquired by GVC Holdings in 2013.   

Updating stakeholders, GVC ‘strongly disputes’ the figure demanded by the Greek auditor, stating that its ‘multiples are significantly higher than the revenues generated by the subsidiary’.

Having been advised by Greek tax experts, GVC states that it has ‘strong grounds’ to dismiss its tax assessment and has moved to file a corporate appeal with the Greek High Court.

Nevertheless, in order to protect its existing Greek operations, GVC will enter into a provisionary payment scheme with the tax authority.

The scheme will see GVC commit to providing ‘held on account’ transactions of €7.8 million per month over the next 24 months.

In its update, GVC states that ‘entering into such an arrangement is not an admission that the assessment is correct, and the Group will seek to recover such payments’.

Closing its corporate update, GVC has sanctioned approximately €200 million to be added to the firm’s 2017 financial accounts to cover its Greek dispute.

Totally Gaming says: A Greek tax battle is the last thing GVC Holdings needs, particularly entering its final takeover assessment by Ladbrokes Coral investors.

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