Playtech strikes €28m tax agreement with Israeli authorities

Playtech will pay an additional €28m (£25.2m/$32m) in taxes in relation to certain activities carried out in Israel between 2008 and 2017.

The online and land-based gaming solutions provider will make the payment after reaching an agreement with Israeli tax authorities on December 31.

Authorities carried out a civil tax audit focused on the supplier, and made a series of transfer pricing adjustments relating to certain functions performed by the supplier in Israel over the period in question.

The agreement also confirms that Playtech will not be subject to any penalties that may have resulted from the audit.

The company expects to make the payment within the next 30 days and will report the additional tax charge as an exceptional item in its 2018 accounts. 

Playtech is facing further impact on its bottom line following changes in Italian gambling tax laws, which came into force from January 1, 2019.

The company said the decision to increase taxation on various types of gambling activities, could reduce adjusted EBITDA by between €20m to €25m in the current year.

Image: Marco Verch