Gambling software group Playtech has agreed to pay Israeli tax authorities €28 million following an audit that probed 10 years of accounts.
The Ftse 250-listed gambling software development company said that, following a civil tax audit covering the years 2008 to 2017, the country has made "transfer pricing adjustments" relating to Playtech's activities in Israel. Playtech will pay the money but no penalties will be imposed as a result of the audit.
The additional tax charge will be reflected as an exceptional item in Playtech’s 2018 accounts and payment is expected to be made in the next 30 days.
The news comes just days after Playtech warned it would take an earnings hit of up to €25 million in 2019 due to new Italian gambling taxes. The Italian senate recently passed the country’s 2019 budget, which includes tax rises on gambling activity.
Playtech’s full-year guidance, which was for adjusted earnings of €320 million to €360 million as of November, remains unchanged.