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PS: but, agreed, the resignation of their current auditor is a red flag.
Too early for someone to step forward.
It'll be for SPD to choose their next auditor, after shortlisting.
"How can 674m euros = $1.2bn?:
The issue isn't the FT's calculations - I think it should be more like $750m - but potential they might end up with an auditor appointed. One appointed by the Department for Business. Even with the very outside risk that will happens it's going to very difficult. You've got to wonder haven't you. Why there's no one who wants to step forward?
That isn't a matter of calculation, but it is a very large red flag.
Must be including Grant Thornton’s fees for their quality audits
How can 674m euros = $1.2bn?
London | The UK arm of Grant Thornton has told regulators it intends to quit as Sports Direct’s auditor following concerns over the disclosure of a €674 million ($1.2 billion) tax bill.
https://www.afr.com/companies/professional-services/grant-thornton-to-quit-as-sports-direct-auditor-over-1-2b-tax-bill-20190730-p52c22
Typo again apologies-outgoing finance director is Jon kempster of course.
Oh dear oh dear oh dear.Situation appears to be going from bad to worse by the hourFollowing the resignation of finance director Jon Kemp’s term it appears auditors Grant Thornton have now quit according to the Financial Times.Very bad odour around this stock now.
Oh dear dear.Hardly a re-assuring rns .Lioks like vat evasion and fraud for which a substantial settlement amount will have to be paid.With the combo of other serious woes in abundance,particularly the ill timed purchase of House of Fraser and the general demise of high street retailing i’m afraid it’s run for the hills time here.Anyone who can get out at plus £2.oo tomorrow certainly imo will not regret it and will have had a result.Couldnt be happening to a nicer chap in Mr Ashley btw lol.
We've already got BoJo, don't need another version of the Donald! (little unkind to BoJo, perhaps).
... Laga, the legal affiliate of Deloitte in Belgium. Laga support the Sports Direct group with this matter in Belgium...
Looks as if SPD are not alone in their discussions with the Belgian tax authorities.
Should read "Corporation".
I think i may be turning into Donald Trump--heavens above.
Ocelot, you are quite correct but i was really referring more to loopholes that Companies employ to get around having to pay tax (Coporation / Vat).
Pure speculation on my part, but if SPD have more VAT to pay in Belgium, it may mean they can reclaim more VAT on their inputs elsewhere.
... The Notice was brought to Sports Direct's UK management's attention at approximately 12 noon on 25 July 2019. It referred to VAT, Penalties and Interest but provided no detail on how these figures had been arrived at or to what they related...
So to to with VAT and nothing to do with the transfer of profits from one jurisdiction to another.
I've read the RNS relating to the Belgium Tax Demand. Sports Direct still do not deny that there is a case to answer. They simply state that is not probable that they will have to pay the sum demanded ( that is almost certainly true). The problem is that it is quite probable that they will need to pay something - - it could be anything from £10M to £400M. Also whatever Sports Direct were up to will need to stop immediately and that will probably affect profits significantly.
I remember Starbucks had a subsidiary in the EU (Holland or Luxembourg) and this subsidiary was overcharging Starbucks in the UK for the coffee beans. The profits the subsidiary was making was taxed at a very low rate but this meant that the UK division were paying a high price for coffee and this reduced the profits in the UK that would have been taxed at a higher rate.
I have no ideal if Sports Direct had their own loophole but it looks as though the Belgium tax authorities think they do.
I am also amazed that the Share Price did not fall much further but if i was a shareholder i would think that I've dodged a bullet and i would waste no time in getting out of this Company. Things are not going to get any better any time soon (if ever).
Fair enough.
Broker on Bloomberg has announced today that in its opinion Sports Direct could go bust within six months.
------------
Which broker, baserite?
Appears highly unlikely, given the solidity of the core business.
Perhaps the lack of fall today reflects two simple realities:
a. MA owns most of the company so there's only a minority of stock floating in the free market.
b. the market knows that MA has very little time for them and is a one off, often acting eccentrically. He is likely to take the company private if the price drops enough .....
Typo -Shorters.
Shortest will definitely imo be all over this in the coming days.Broker on Bloomberg has announced today that in its opinion Sports Direct could go bust within six months.More horrors to be revealed from House of Fraser methinks .
Amazed this was not much lower today, after the shambles last Friday and bad news. I think the shorter may be all over this stock tomorrow as many were expecting this lower. This company is the worst run so I don't expect sudden good news.
impressive - down just 3.9% now, at 220.80p.
Well I was thinking £1.50 today so happy to admit to being way out - it helps that MA holds over 50% of the share issue - we are still looking at a 10% drop and significant drop over the last six months - I guess you need to compare the share price performance to the rest of the sector..
still waiting for that £1 share price everyone was raving about over the weekend....