Paddy Power Betfair to challenge £49m tax bills

Paddy Power Betfair is to mount a legal challenge after being landed with a 55 million euro (£49 million) tax bill in Germany and Greece.

The bookmaker said on Wednesday that legacy tax assessments in the European countries – relating to Betfair Exchange in Germany and business in Greece – have resulted in demands for cash.

In Germany, the Hessen Fiscal Court found against Paddy and deemed that a tax liability of approximately 40 million euro (£36 million) is payable for 2012.

In Greece, tax officials believe the company to be liable for 15 million euro (£13 million) in unpaid taxes, including penalties and interest relating to the years 2012, 2013 and 2014.

But Paddy said in a statement that it intends to fight the decisions.

“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,” the bookmaker said.

“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.”

Along with other betting firms, Paddy has been expanding globally amid a tougher regulatory environment in the UK.