One of the world’s biggest gambling companies is being hit with some major tax fees. According to multiple reports, Paddy Power Betfair is being asked to pay more than €50 million to Germany and Greece. We’ll be talking more about the Paddy Power Betfair tax demand fight and predicting how this entire scenario will unfold.
We’re considering this a tax demand battle because Paddy Power is claiming they intend to challenge the taxes in court. Whether or not they’re successful remains to be seen.
Let’s get into it!
Greece and Germany Demand Tax Payments
Two countries are demanding millions from Paddy Power Betfair. Greece is asking for €15 million, and Germany is asking €40 million. The payments (allegedly) stem from unpaid taxes dating back to 2012.
Greece is alleging that this company owes the money from legacy tax charges during the 2012-2014 period. According to the government here, Paddy Power Betfair was operating under the provisions of a Greek interim license at this time. Greece has been a solid market for many online gambling websites in Europe over the years.
Germany is asking for considerably more. They claim that a 2012 Betfair Exchange tax assessment was incorrect. The Betfair Exchange was closed in November of 2012, and this company is heavily disputing the tax demand set by Germany.
These are both major payment requests. Will one of Europe’s most popular gaming companies pay out?
Paddy Power Betfair Tax Demand Will Be Settled in Court
Reports have come out that Paddy Power Betfair has already paid Greece the money they’ve demanded. Some are claiming that the amount that Greece demanded was even more than what this company earned in the country between 2012-2014. They are now working to recover the money paid.
PPB has not paid Germany the money they’re demanding.
“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,” they said in an official statement.
The Paddy Power Betfair Tax demand fight will head to the courtroom. Both sides will need to present their evidence. At this point, no one knows how the situation will unfold.
Growth of Paddy Power Betfair over the Years
Paddy Power and Betfair officially merged as a company back in 2016. They’re a constituent of the FTSE 100 Index and have annual revenue earnings of more than £1.5 billion. Not long ago, this company paid $158 million to merge its US business with FanDuel.
Paddy Power Betfair also operates Sportsbet in Australia. They’ve recently pushed to begin operating land-based betting shops inside the territory of Victoria here.
This company is without a doubt one of the most popular gambling sites in the world. They offer a massive list of sports betting odds and online casino games.
Even if they lose these cases in court, it’s unlikely to have any massive impact on their business. Make sure to stay tuned for updates on the situation as it unfolds.