NetEnt to appeal Swedish tax ruling
Tax agency decision comes as software provider announces casino deal with 888.
Swedish-listed software provider Net Entertainment has announced plans to appeal what it deems an “unfounded” decision from the Swedish Tax Agency to impose on it a tax bill of SEK92.1m (£8.7m).
The company’s chief executive Per Eriksson had earlier argued that it had “done nothing wrong” with regards to the back-tax bill, which relates to activities from 2007-2010 and is higher than the initially quoted SEK88m (£8.3m) due to what NetEnt describes as “An error in the previous audit memorandum from the Swedish Tax Agency and imposed interest.”
Eriksson (pictured) said at the time “We don’t know where this has come from. We follow, pay and have paid all the relevant taxes in this country and all the other countries in which we operate,” and today the provider added in a statement: “Net Entertainment does not currently see grounds to make a provision in the accounts for possible additional taxes related to this matter.
“Net Entertainment insists that it has followed applicable laws for taxation of its operations, which is also supported by the experts that the Company has consulted on the subject,” it explained.
The development comes as the Swedish government prepares measures which could bring about the regulation of the online gambling market in the country.
It has pledged to introduce regulatory proposals by May this year, following on from last June’s report from the country’s audit office, and acknowledges that unregulated sites may be more attractive to players due to the payouts they offer.
Meanwhile NetEnt today also announced a deal with 888 to supply the London-listed operator with mobile and online casino content.
The agreement will cover the operator’s casino and bingo brands in markets including Italy, which issued its first online slots authorisations last month.
Commenting on the deal the software provider’s chief executive added: “888 is one of the largest operators in the world and this agreement further proves the confidence and trust which exists in Net Entertainment’s operational and technical leadership.”
“Both parties are now working very close together to secure a successful integration and planning for commercial launch,” he added.