NetEnt Successful in Long-Running Swedish Tax Dispute
Swedish-based casino software provider, Net Entertainment (NetEnt), has won a long-running dispute regarding Swedish taxes. NetEnt claimed victory in a case against the Swedish Tax Agency with the Administrative Court of Appeal ruling in their favour and awarding them SEK1.8 million in compensation to cover their legal costs.
The Court of Appeal reversed the ruling of the Administrative Court from November 2014 which ruled in favour of the tax agency which demanded approximately SEK94.4 million in additional taxes for the years 2007 to 2010. The compensation amount that was awarded was the value that NetEnt reported as contingent liability during the dispute period.
The decision to impose additional taxes came after an audit of Net Entertainment NE AB. The agency stated that the transfer pricing between the Swedish-based parent company and their Malta-based operations had not been motivated. They interpreted the agreements between the different operations in the Net Entertainment Group differently from the company’s experts.
NetEnt appealed the original ruling claiming that it complied with all of the taxation laws of its operations. Apart from the compensation awarded to cover legal costs, NetEnt claims that the ruling will not impact its reported earnings or its financial position as no provisions had been made in relation to the case.
NetEnt stated that the ruling from the appeal’s court reflected what the company and their legal council have maintained throughout the three year dispute.
Established in 1996, the Swedish-based software provider is a pioneer in the industry. It has grown to be one of the leading software providers with partnerships around the world.
April 16, 2017