A leading gaming company has successfully concluded an ongoing tax audit dispute in one of its major markets.
Gaming solutions producer Aspire Global has announced that the company has reached an agreement with the tax authorities in the state of Israel. The agreement is a retroactive settlement of €13.7 million to be made to the Israeli Tax Authority.
The deal relates to a tax audit carried out on Aspire. The audit covered a range of aspects of the gambling group’s internal functions, including transfer pricing between the different entities that make up the Aspire group.
According to Aspire, the deal will end all of the ongoing investigations by the Israeli tax authorities into the group’s operations in the country. Aspire has reportedly agreed to pay the amount, which relates to the fiscal years between 2008 and 2018 in full.
The additional charge is likely to be entered as an additional amount in the final tax accounts for the year of 2019. And it has also been reported that no further penalties have been added by the Israeli authorities, which will be a relief to Aspire governance.
In a statement commenting on the agreement, the company confirmed that the outstanding payment would be made within a matter of days, and it also insisted that the company itself remained in a strong position, despite the ongoing uncertainty over the audit:
“The settlement with the ITA was actively chosen over a lengthy period of uncertainty. The group’s financials remain strong despite the agreement and per September 30, cash amounted to €43.1m.”
Back in November, the company reported a 16% growth in revenue on a year-on-year basis for the third quarter of 2019. But it was also hit with regulatory punishments in Sweden, where its Swedish subsidiary faces a €300,000 fine for a breach of the self-exclusion rules.