Online gaming and financial trading company Playtech PLC (LON:PTEC) has informed that it has come to an agreement with the Israeli tax authorities last week.
The company shared that following a civil tax audit covering the 10 fiscal years 2008 to 2017 (inclusive), the Israeli tax authorities have made transfer pricing adjustments in relation to certain functions performed by the Playtech group in Israel during this period.
The Playtech group reached an agreement with the Israeli tax authorities on 31 December 2018 as follows:
- for the years 2008 to 2017, the Playtech group will pay additional tax of approximately €28 million;
- no penalties are to be imposed as a result of the audit; and
- the agreement covers the entirety of the Playtech group’s activity in Israel.
This additional tax charge will be reflected as an exceptional item in Playtech’s 2018 accounts and payment is expected to be made in the next 30 days.