Paddy Power Betfair to appeal against £49 million tax demand

Paddy Power Betfair are set to appeal against two separate tax demands totalling nearly £50 million in Germany and Greece.

One relates to Betfair's exchange which operated in Germany until November 2012. The Hessen Fiscal Court has ruled the bookmaker has a tax liability of approximately €40m (£36m) including accrued interest.

Meanwhile in Greece, the company have recently been issued with a tax assessment for the 2012, 2013 and 2014 financial years relating to paddypower.com's interim licence there.

The assessment concluded that the group is liable to pay €15m (£13m) in taxes including penalties and interest. The bookmaker said the figure is substantially higher than the total cumulative revenues ever generated by paddypower.com in Greece.

They added: "The group strongly disputes the basis of these assessments, and in line with the legal and tax advice we have received, is confident in our grounds to appeal. We therefore intend to do so.

"Pending the outcome of these appeals, we paid the total Greek liability in January 2019 while we await clarity with respect to the timing of any cash payment in Germany."

Analysts at Dublin-based Davy Group said the the potential liability "does little to impact" Paddy Power Betfair's balance sheet strength and was "modest in a group context".

They added: "However, it would clearly represent a disappointing (enforced) use of cash at a time when Paddy Power Betfair has multiple investment opportunities at its disposal."

Paddy Power Betfair shares were down 95p at 6,315p at 3.30pm on Thursday.

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