Mr Green challenges Austrian law over £8m tax bill
Stockholm-listed operator says Austrian tax law is "non-compliant" with several EU directives as it looks to avoid hefty tax bill
Online casino operator Mr Green has initiated legal proceedings in Austria in a bid to avoid being hit with a SEK100m (£8.6m) tax bill.
The Stockholm-listed firm is contesting Austrian law implemented in 2011, which requires all online casino companies to pay a 40% tax on gross gaming revenues generated in the country.
The law applies to operators regardless of whether they hold an Austrian licence, or whether they are based in the country or elsewhere.
However, Mr Green said it believed the legislation failed to comply with constitutional legislation in Austria, as well as several EU directives.
The company said it had chosen to file a self-assessment in accordance with Austrian tax law in order to avoid the risk of “significant future tax surcharges”.
“We are contesting this liability to pay taxes,” Tommy Trollborg, chairman of the board at Mr Green, said.
“However, the implications of losing such a legal process are so far reaching that Mr Green has chosen to inform about the self-disclosure to the Austrian tax authorities,” he added.
Mr Green said it had initiated discussions with Austrian tax authorities in conjunction with contesting the tax obligation, and is investigating how the outcome will impact earnings and cash flow.