Israel-based gaming giant Playtech has today confirmed that it has reached an agreement with the country’s tax authority for an additional payment of $28m.
The payment follows a civil tax audit covering the 10 fiscal years from 2008 to 2017 inclusive. In a statement, Playtech said: “The Israeli tax authorities have made transfer pricing adjustments in relation to certain functions performed by the Playtech group in Israel during this period”.
The agreement was reached on December 31, as a result of which Playtech group will pay additional tax of approximately €28m for the 10-year period in question and receive no penalties as a result of the audit.
The agreement covers the entirety of the Playtech group’s activity in Israel.
The company said the additional tax charge will be reflected as an exceptional item in Playtech’s 2018 accounts. Payment is expected to be made in the next 30 days.
The move follows last week’s news that Playtech could face an additional tax bill in Italy, as a result of legislative changes in the country.