Playtech will pay $32 in taxes to Israeli authorities
The developer of top live gaming solutions, Playtech, has announced last week the company will pay approximately $32 million in additional taxes to Israeli authorities following a civil tax audit which covers a decade of the company’s activity in the country.
This top-tier company was founded in 1999 by Israeli-Cypriot multi-billionaire Teddy Sagi and has since then established itself as a leading hi-tech company that develops cutting-edge, value-added solutions to the industry’s leading operators.
Among the premium online gaming applications Playtech provides are online casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. The company currently employs 5,800 employees across 17 countries, Israel being among them, and is headquartered on the Isle of Man.
Playtech, the company listed in the London Stock Exchange, has agreed to pay $32 million for the tax owned between fiscal years 2008 and 2017 to the Israeli Tax Authority.
The deal was made after an audit of Playtech accounts and Israeli tax authorities “made transfer pricing adjustments in relation to certain functions performed by the Playtech group in Israel during this period”. The additional tax charge will be reflected as an exceptional item in Playtech 2018’s accounts.
No penalties have been imposed due to the audit and the charge that covers transfer pricing adjustments, in relation to certain functions performed by Playtech group in Israel, would be paid over the next thirty days.
The move follows the recent news that Playtech could face an additional tax bill in Italy.
Italian legislation is to increase taxation on various types of gambling in the country and the move is expected to reduce Playtech 2019 earnings before interest, taxes, depreciation and amortization by approximately $23 to $28 million.