Bookmaker giant Paddy Power Betfair have been hit with a combined £49 million tax demand from the German and Greek authorities. Covering the years 2012 – 2014 inclusive.
In news which is sure to not be well received by shareholders of the group. The German Finanzamt have found that Paddy Power Betfair owe them £36 million in outstanding taxes, in relation to the Betfair Betting Exchange for the tax year ending 2012. Paddy Power Betfair exited the German marketplace at the end of 2018.
In further bad news for the betting group, the Greek tax authorities are demanding a cool £13 million as a result of Paddy Power’s interim Greek License, covering the years 2012, 2013 and 2014.
At the time of writing, FTSE 100 listed Paddy Power Betfair shares have dropped over half a percent on this news. The tax bill levelled by the Greek authorities has already been paid, but the the bookmaker are seeking the monies to be returned.
Commenting on this news, a spokesman for Paddy Power Betfair stated: “The group strongly disputes the basis of these assessments, and in line with the legal and tax advice we have received, is confident in our grounds to appeal. We therefore intend to do so.
‘Pending the outcome of these appeals, we paid the total Greek liability in January 2019 while we await clarity with respect to the timing of any cash payment in Germany.”
Paddy Power and Betfair agreed to merge on 8th September 2015, forming in the process one of the largest betting groups in the world. The proposed merger of the companies was finalised on 2nd February 2016.
The company offers casino, poker and sportsbetting products as well as a high street bookmaker presence in the UK and Ireland. Operating under their own distinctive brand names.
In May 2018 Paddy Power Betfair completed the acquisition of fantasy sports operation FanDuel in a deal worth a cool $158 million.