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Net Entertainment loses tax case

Thursday September 12,2013 : NET ENTERTAINMENT LOSES TAX CASE REVIEW (Update)
Management intends to continue with appeal process.
The tax problems of Swedish online gambling software developer Net Entertainment appear set to continue following a decision on review by the Swedish Tax Agency that its original assessment is to stand.
On Thursday the company announced that it is not satisfied with the results of the review and will continue invoking the appeal process through the Administrative Court.
Net Entertainment launched an appeal for a review of its tax affairs in May this year following the Swedish taxman's decision to impose additional taxes on Net Entertainment NE AB .
Back in January this year Net Entertainment announced that the Swedish Tax Agency had decided to impose additional taxes of around SEK 92.1 million concerning fiscal years 2007-2010 after a tax audit.
The 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 was not sufficiently motivated. This led to the Agency giving a different legal interpretation to the company's advisers on certain agreements between companies within the Net Entertainment Group.
Net Entertainment disputes the assessment and filed an appeal in May of this year, which has now failed.
The company continues to insist that it has followed applicable laws for taxation of its operations, a view that is supported by the experts the company has consulted on the subject.

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