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 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.
Frank Hoffmann, CEFA
T: +49 (0) 40 808141-123
|Company:||ZEAL Network SE|
|Phone:||+49 (0)40 808141-123|
|Fax:||+49 (0)40 808 141-199|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||940943|
|End of Announcement||DGAP News Service|