Published on 11th March 2016 by Becky Mosley

NetEnt have recently been involved in a tax dispute with Sweden’s Tax Agency. The Swedish company, which is one of the oldest casino software providers, announced that a ruling has been made by Sweden’s Administrative Court of Appeal regarding the company’s tax dispute.

Tax Bill Higher Than Expected

Back in January 2013, it was announced that the Swedish Tax Agency had levied an additional SEK94.4 million in taxes on the company to cover the period between 2007 and 2010. This tax was imposed on the company after an audit had been carried out by the Swedish Tax Agency. While the dispute has been going on, NetEnt has reported this sum of SEK94.4 million as a contingent liability. This tax bill was much higher than what NetEnt was expecting.While the dispute was ongoing, NetEnt maintained that it had fully complied with all applicable taxation laws and should not have to pay this extra amount of tax.

Appeal

NetEnt previously filed an appeal and this has since gained approval from the Administrative Court of Appeal. In addition to this, an earlier ruling that was made by the Administrative Court has been overruled. The latest ruling that’s been made stipulates that NetEnt is to receive SEK1.8 million in compensation; this amount is intended to cover NetEnt’s growing legal costs.Even though NetEnt has been involved in this dispute for a number of years, the company has revealed that its finances, including its earnings, won’t be negatively affected by this ruling. The company has announced that the new ruling is line with what they, and the experts they have hired to sort out their finances, have maintained all along, which is that the Swedish Tax agency should not have given the company this extra tax bill. NetEnt did not make any provisions in relation to the dispute as it was confident it had fully complied with taxation laws all along.