29.012018GVC Holding have to pay $200 million to Greek Tax Authorities.
GVC Holding, an online and land-based gambling operator, received a major jolt from Greece tax authorities, as they were slapped with a $187-million tax notice. The company has recently set aside $200 million for the case and this is expected to affect GVC’s expansion efforts. GVC Holding is a Fortune 250 company and is listed on the London Stock Exchange. The company suffered a 2% drop in its share price, on early Monday trading, due to the unexpected loss. With this, the company has shed off 6% of its total market cap, since the tax notice was made public. GVC Holding, in an official statement, said that it has “strong grounds to appeal” the judgment and will soon form a team to explore the legal options.
However, the company has made provision for a $200 million payout to the Greek government, in its 2017 accounts. The company will be paying $8.3 million, every month, over the period of next 24 months. It will also simultaneously work towards exploring all its legal options to recover the tax from the Greek government.
GVC Holding is currently in the midst of acquiring Ladbrokes Coral, a British based gambling company. This acquisition, which is valued at 4 billion Euros, is one of the largest in the industry and is expected to great a gigantic betting company, on its completion. The $187 million tax notice has its source in this takeover deal. According to Greece Tax Authorities, the tax was levied on bets made on Sporting Bet, a subsidiary of GVC Holdings, during 2010 and 2011. However, the company claims that the tax is several times the actual revenue of the subsidiary. Both, GVC Holding and Ladbrokes Coral, have sought to go ahead with the merger, despite this tax mishap.
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