Last checked at 13 Feb 2019 16:50
13 February 2019
Paddy Power Betfair plc (the "Group")
Legacy German & Greek tax assessments
The Group today provides an update on two separate disputed legacy tax assessments. The first relates to the Betfair Exchange in Germany, which operated there until November 2012, and the second relates to the paddypower.com business in Greece.
The Hessen Fiscal Court has provided us with its decision relating to the Group's appeal of a 2012 German tax assessment relating to the Betfair Exchange, which operated in Germany until November 2012. The Fiscal Court found against the Group and deemed that a tax liability of approximately €40m (£36m) is payable (including accrued interest). 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 (£13m) in taxes including penalties and interest. This is substantially higher (by multiples) than the total cumulative revenues ever generated by paddypower.com in Greece.
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.
Contacts:
Ivan Kelly, Investor Relations + 353 87 7944 999 / + 353 1 905 1262
David Jennings, Corporate Finance & Investor Relations + 353 87 951 3560 / + 353 1 905 0953
James Midmer, Corporate Communications + 44 20 8834 6843 / + 353 1 903 9106
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