Net Entertainment submitted an appeal in May of this year regarding the Swedish Tax Agency’s decision to impose additional taxes on Net Entertainment NE AB. The Swedish Tax Agency has now announced its review decision where they maintain their previous position which was expected. Net Entertainment disputes the Swedish Tax Agency’s decision and will now as previously communicated continue the appeal process in the Administrative Court.
Net Entertainment announced in January that the Swedish Tax Agency had decided to impose additional taxes on Net Entertainment in the amount of approximately 92.1 MSEK concerning fiscal years 2007-2010 after a tax audit concerning Net Entertainment NE AB.
The Swedish Tax Agency stated in its’ decision that the transfer pricing that had been applied between the Swedish based parent company Net Entertainment NE AB and the Malta-based operations is not motivated. Thus, the Swedish Tax Agency gave certain agreements between companies within the Net Entertainment Group a different legal interpretation and economic substance than what Net Entertainment and it’s expert advisors PwC and the law firm Lindahl do.
As has been communicated previously, Net Entertainment disputes the assessment that the Swedish Tax Agency has done and filed an appeal in May of this year. Net Entertainment insists that it has followed applicable laws for taxation of its operations, which is also supported by the experts that the Company has consulted on the subject.
The Company will now continue the appeal process in the Administrative Court. Net Entertainment does currently still not see grounds to make a provision in the accounts for possible additional taxes related to this matter.
For additional information please contact;
Maria Hedengren, CFO Net Entertainment; Phone +46 8 57 85 45 00
maria.hedengren@netent.com
Elisabeth Lennhede, Communications Director Net Entertainment; Tel +46 709 12 45 31
elisabeth.lennhede@netent.com
This information is such information that Net Entertainment NE AB (publ) is required to publicly disclose under the Securities Market Act (2007:518) and/or Financial Instruments Trading Act (1991:980). The information was submitted for publication on September 12th, 2013 at 2.00 pm.
About Net Entertainment
Net Entertainment is a premium supplier of digitally distributed gaming systems used by some of the world's most successful online gaming operators. The Net Entertainment casino is a complete gaming solution comprising both a complete management platform and a full suite of high quality games. Operators are provided a customized casino that is easily integrated ensuring short time to market and a cost efficient operation. Net Entertainment is listed on Nasdaq OMX Stockholm (NET-B). More information about Net Entertainment is available at www.netent.com.
