Paddy Power Betfair intends to appeal against a total historical tax bill of €55m imposed against the company’s German and Greek businesses.
The first fine of €40m relates to the Betfair Exchange in Germany, which was operational up to November 2012, while the second of €15m relates to the paddypower.com business in Greece.
The Hessen Fiscal Court provided Paddy Power Betfair with a decision relating to the group's appeal of a 2012 German tax assessment relating to the Betfair Exchange. The Fiscal Court found against the Group and deemed that a tax liability of €40m is payable, including accrued interest.
Paddy Power Betfair says this represents a multiple of the revenues generated by the Exchange during the assessment period. Separately, the group was recently issued with a Greek tax assessment for financial years 2012, 2013 and 2014, relating to paddypower.com's Greek interim licence.
This assessment concluded that the group is liable to pay €15m in taxes including penalties and interest. Paddy Power Betfair says this is substantially higher, by multiples, than the total cumulative revenues ever generated by paddypower.com in Greece.
Paddy Power Betfair stated: “The Group strongly disputes the basis of these assessments, and in line with the legal and tax advice we have received, is confident in our grounds to appeal. We therefore intend to do so. Pending the outcome of these appeals, we paid the total Greek liability in January 2019 while we await clarity with respect to the timing of any cash payment in Germany.”
