The start of the year not only often brings the pinch from the festive period but also the biting start of the tax year. For businesses owners and businesses, the winter blues truly kick in when that letter arrives asking for the required tax amounts. For Playtech, the popular online casino gaming firm, the £25m tax bill which accompanied their introduction to a New Year will certainly make January a sorry month.
With tax issues emerging from two nations, this will see the company have to take some early stock as the new year offers new beginnings. Playtech are expected to have to make around £25m in payments to the Israeli Tax Authority, with a civil tax audit on their accounts from 2008-2017 causing some debate.
This has come about due to transfer pricing adjustments. This cross-nation principle means that it is now expected that the profits made by connected companies will be taken together more readily. This could mean that tax liabilities could be adjusted to fit with this, and could mean that other firms face a similar bill in the future.
However, it has been already listed on the 2018 Playtech accounts as an “exceptional item” and repayment has already been put in place. For those who wondered if such a challenging start to the year might cause some slowdown for Playtech, their quick settling of the dispute ensures that everything should be just fine for the development giant.