Net Entertainment has vowed to take its battle with Swedish Tax Agency to the country’s Administrative Court after the authority rejected an appeal by the digital gaming supplier.
In May, Net Entertainment launched an appeal after the regulator imposed additional taxes of SEK92.1 million (€10.6 million/$14 million) on the company following an audit of its operations from 2007 to 2010.
The authority has now rejected the appeal, but Net Entertainment has pledged to fight on.
“The Swedish Tax Agency stated in its decision that the transfer pricing that had been applied between the Swedish based parent company Net Entertainment NE AB and the Malta-based operations is not motivated,” Net Entertainment said.
“Thus, the Swedish Tax Agency gave certain agreements between companies within the Net Entertainment Group a different legal interpretation and economic substance than what Net Entertainment and its expert advisors PwC and the law firm Lindahl do.
“Net Entertainment insists that it has followed applicable laws for taxation of its operations, which is also supported by the experts that the company has consulted on the subject.
“The Company will now continue the appeal process in the Administrative Court. Net Entertainment does currently still not see grounds to make a provision in the accounts for possible additional taxes related to this matter.”