NetEnt wins ?7.5m Swedish tax battle
Administrative Court of Appeal sides with gaming supplier in long-running back tax dispute
NetEnt has won its long-running legal battle with Swedish Tax Agency after the country’s Administrative Court of Appeal ruled the games supplier would not have to pay the disputed SEK94.4m (?7.5m) in back taxes.
The contested amount dates back to 2012, when the Swedish Tax Agency sent NetEnt the multi-million pound bill following a recalculation of taxes for the years 2007-10.
NetEnt at the time described the claim as “unfounded” and took the matter to court, and having lost the first judgment the firm subsequently took the case to the Court of Appeal.
And this morning NetEnt announced the court had ruled in is favour and was no longer liable for the sum, and in addition awarded NetEnt SEK1.8m (?150,000) in legal costs.
During the dispute, NetEnt had been recording the disputed sum as a “contingent liability” within its financial report and therefore, bar the legal costs, today’s news will have no impact on the company’s financial position.
Separately, the firm yesterday revealed it had become a member of the World Lottery Association (WLA), which will enable the firm to tap into the regulated lottery sector.
“NetEnt’s strategy is to expand on regulated markets and becoming associate members of WLA is a significant step for us as we grow our presence further in this important market segment,” Per Eriksson, NetEnt president and CEO, said.
NetEnt’s share price remained relatively unchanged this morning at SEK488.10.