January 25, 2018 / 5:22 PM / a year ago

BRIEF-GVC Books 200 Mln Euro Provision Over Greek Tax Dispute

Jan 25 (Reuters) - GVC Holdings Plc:

* ‍ONE OF GROUP’S SUBSIDIARIES OPERATING UNDER A GREEK INTERIM GAMING LICENCE HAS RECEIVED A TAX AUDIT ASSESSMENT

* ‍ASSESSMENT FROM GREEK AUDIT CENTRE FOR LARGE ENTERPRISES IN RESPECT OF 2010 AND 2011​

* ‍DURING PERIOD BUSINESS WAS OWNED BY SPORTINGBET PLC, PRIOR TO ITS ACQUISITION BY GVC IN 2013​

* ‍TOTAL AMOUNT OF ASSESSMENT IS EUR 186.77M, SUBSTANTIALLY HIGHER BY MULTIPLES OF TOTAL GREEK REVENUES GENERATED BY SUBSIDIARY DURING PERIOD​

* ‍GROUP’S SUBSIDIARY HAS STRONG GROUNDS TO APPEAL ASSESSMENT AND IT WILL, THEREFORE, FILE AN APPEAL​

* ‍AS CURRENTLY THERE IS NO FORMAL SETTLEMENT MECHANISM, APPEAL PROCESS IS EXPECTED TO BE CONDUCTED THROUGH GREEK COURTS​

* ‍IN INTERIM, TO ENABLE GROUP’S SUBSIDIARY TO CONTINUE TO TRADE NORMALLY, IT INTENDS TO ENTER INTO A PAYMENT SCHEME WITH AUTHORITY​

* ‍ENTERING INTO SUCH AN ARRANGEMENT IS NOT AN ADMISSION THAT ASSESSMENT IS CORRECT AND GROUP WILL SEEK TO RECOVER SUCH PAYMENTS​

* BELIEVES PRUDENT AT THIS JUNCTURE TO MAKE A PROVISION OF ABOUT EUR 200M IN 2017 FINANCIAL ACCOUNTS TO COVER PERIOD AND UP TO END OF 2017​ Source text for Eikon: Further company coverage:

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