ZEAL Network SE: ZEAL subsidiary myLotto24 agrees with tax authority to limit risk until completion of VAT proceedings

Dec 19, 2019 7:22 PM

ZEAL Network SE / Key word(s): Miscellaneous
ZEAL Network SE: ZEAL subsidiary myLotto24 agrees with tax authority to limit risk until completion of VAT proceedings

19-Dec-2019 / 18:22 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


ZEAL subsidiary myLotto24 agrees with tax authority to limit risk until completion of VAT proceedings

myLotto24 Limited, London, United Kingdom ("myLotto24"), a wholly-owned subsidiary of ZEAL, has entered into an agreement with the competent tax authority (Finanzamt) Hanover-Nord, which eliminates the risk of potential fines for late payment of taxes and significantly reduces the amount of potential interest payments.

Accordingly, myLotto24 will - without acknowledging any legal obligation - pay a partial amount of approximately EUR 54 million on VAT assessed in respect of its previous secondary lottery business. The payment is expected to be made in January 2020.

The VAT payment will reduce the consolidated 'cash and pledged cash' and 'financial assets' position of the ZEAL Group accordingly. This totaled approximately EUR 160.1 as of 30 September 2019.

The Fiscal Court of Hanover (Finanzgericht Hannover) had ruled on 19 November 2019 to uphold the appeal by myLotto24 against the assessment of VAT. The tax authority has meanwhile announced its intention to appeal the decision. ZEAL Network SE remains confident that the action brought by myLotto24 will be upheld in the last instance. In this case, the VAT paid plus interest (currently 6% p.a.) would be refunded to myLotto24.


Contact:
Frank Hoffmann, CEFA
Investor Relations

ZEAL
Valentinskamp 70
20355 Hamburg

T: +49 (0) 40 808141-123
M: frank.hoffmann@zealnetwork.de

19-Dec-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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