Playtech has agreed to pay an extra lump sum to the Israeli tax authorities. The deal that resolves a civil lawsuit will cost the tech giant €28 million. In essence, the amount covers unpaid taxes for the period between 2008 and 2017. Interestingly, the agreement from December 31st followed a rather routine audit.
Here Comes the Taxman
As the old saying goes, nothing is certain, but death and taxes. The truth is, the first idea isn’t applicable when talking about a company. Anyway, as life confirms, again and again, the second statement stands twice. And so, even a giant like Playtech had to agree to pay its dues. Officially, transfer pricing adjustments for their business conducted in Israel created the problem.
But in fact, this vague explanation translates to nothing else but transfers between various parts of the business. The fine is hefty, but for a giant like Playtech, it should not cause a major problem. Even if it isn’t the only bad tax-related news for Playtech in recent times.
On a similar note, last December the company issued a warning to its investors. It said they plan to cut their earnings forecast for 2019. Playtech blamed the dump on Italian Senate legislation. Those changes resulted in significant tax hikes in the local market. In addition, the shares lost 7%. And so, a second hit from the taxman in just two months will surely not please the stockholders.
Even so, Playtech continues to grow and expand to new markets. In December, it introduced Quickspin as one of the first providers allowed in Sweden. The games supplier brand is their subsidiary. Also recently they launched Poland’s first regulated online casino website. All in all, the company continues to mark the pace and the trends to the rest of the online casino industry.