It has just been announced that popular Swedish online gambling operator Mr Green had decided to set aside the amount of SEK108 million or approximately US$13 million out of its 2014 profits, in order to prepare itself for its current dispute with the government of Austria, concerning a certain tax imposed by the country.
Not long ago, Mr Green representatives stated that the company was going to bring the matter to both European and Austrian courts, so as to contest the enormous charge.
The charge in question is to be made against the company’s financial results for the final quarter of 2014. What is more, it is supposed to cover the period between January 2011 and August 2014. Mr Green and the Austrian tax authorities are currently discussing the opportunity for the operator to be allowed a partial payment plan.
The casino operator’s hassle with the Austrian authorities dates back to 2011. Since then, the local regulator has been trying persistently to implement a law, under which providers of online casino games are supposed to pay a 40% tax on that portion of their gross gaming win that was generated from their Austrian operations. The tax is applicable to all operators that provide their services in the country no matter whether their headquarters are located somewhere else.
Mikael Pawlo, currently taking the position of a chief executive officer of Mr Green, said in a special statement on the matter that the company is opposing the tax liability. He also said that he and his colleagues hope that their objections will be taken into consideration.
The casino operator is planning to submit an appeal to both the Austrian administrative and constitutional courts. In addition, it will ask the European Court of Justice to further investigate the matter. The company suggested that the Austrian tax authorities have failed to comply with certain local and EU directives.
Back in October 2014, Mr Green initiated legal proceedings against the Austrian regulator for the first time. It also stated that it would examine thoroughly any potential impact that the issue might have on its cash flow and earnings. The company has been trying to avoid the enormous tax bill since then.
In addition, the statement that was released earlier today pointed to the fact that the casino operator still intends to pay a 2014 dividend amounting to SEK46.6 million (US$5.5 million) or otherwise, SEK1.30 (US$0.16) per share.
