Mr Green makes provision due to Austrian tax dispute – Makes a provision of SEK 108 million in the 2014 accounts – Proposes unchanged dividend

The AktieTorget-listed Mr Green & Co will make a provision totalling SEK 108 million in the 2014 accounts as a result of the previously communicated Austrian tax dispute. The Maltese online casino Mr Green Ltd – the entity affected by the dispute – continues to contest the tax liability in its entirety.

Mr Green Ltd operates from Malta and is subject to a Malta gaming license issued by the Lotteries and Gaming Authority of Malta. Since 2011, Austria has enforced legislation requiring online casino companies to be taxed at a rate of 40 per cent on their Austrian sales (gross game win). The law covers online casino games regardless of whether the company holds a license in Austria or not, or whether the operations are conducted from Austria or another jurisdiction.

“We contest the tax liability and are hopeful that our objections will be given due consideration,” says Mikael Pawlo, CEO of Mr Green & Co.

Mr Green Ltd is engaged in ongoing discussions with the Austrian tax authority in relation to such aspects as a partial payment plan, at the same time as Mr Green Ltd and the company’s expert advisers have several objections to the legislation and contest the liability to pay tax in its entirety on multiple grounds. Mr Green Ltd will file an appeal with administrative courts and the constitutional court in Austria, and request that the European Court of Justice examine the case. Mr Green Ltd also intends to bring the matter to the European Commission for examination. Despite this, Mr Green & Co is making a provision connected to the self-assessment period (Jan 2011 – Aug 2014) of SEK 108 million against its fourth-quarter results in accordance with IFRS.

The company continues to operate in Austria but is reducing its market investments. As of September 2014, Mr Green Ltd’s Austria-related gaming sales are entered in the tax returns on a monthly basis in a total tax amount of zero SEK, something that was not possible to do for the self-assessment period.

The Board of Directors propose that the Annual General Meeting of Mr Green & Co approves an unchanged dividend corresponding to SEK 1.30 per share, implying a total dividend of SEK 46.6 million.

For further information, please contact:
Mikael Pawlo, CEO of Mr Green & Co AB (publ), Tel: +46 70 418 65 02