Earlier today, gambling operator Mr Green & Co announced that it had commenced an appeals process concerning its financial responsibility in Austria. The company had presented an appeal to the Austrian Administrative Court and had also filed a complaint to the European Commission, so as for its dispute with the country to be eventually brought to an end.
The legal proceedings had been instituted by the operator’s online casino subsidiary Mr Green Ltd.
Per Norman, Chief Executive Officer of Mr Green & Co, said that his company objects to the entirety of the tax liability and hopes that its complaint will be paid due attention.
Mr Green & Co and its subsidiary’s dispute with the Austrian government dates back to 2011. Mr Green Ltd. is based in Malta and operates under a Malta gaming license granted by the country’s gaming regulator. In 2011, a legislation was introduced in Austria that required online casino operators to pay a 40% tax on their gross game win. The country’s government asserted that the tax was applicable to both local licensees and licensees based in other jurisdictions.
Mr Green Ltd. and its advisors have appealed the legislation in question and more particularly the liability to pay the entire tax. The company objected to it on several grounds. According to the casino operator, the legislation failed to comply with the Austrian constitutional legislation and several EU directives.
Moreover, holding a license from the Malta Gaming Authority, Mr Green Ltd. argued that it should be subjected only to Maltese regulations. This is why, as mentioned above, the company decided to file its objections to the Austrian Administrative Court and to submit a complaint to the European Commission.
Mr Green Ltd. pointed out in a statement released earlier today that in accordance with the International Financial Reporting Standards, it had already provided the amount of SEK108 million for the self-assessment period from January 2011 to August 2014 against its financial results for the fourth quarter of 2014. The tax authority has been submitted a formerly communicated plan. In other words, SEK108 million are expected to be paid in 2015 and 2016.
Mr Green Ltd. initiated court proceedings against the Austrian tax regulator back in October 2014, when the company said that it would carefully examine the impact the new tax would have on its cash flow and earnings.
