Paddy Power boosted by €26m Aussie tax gain
Irish bookmakers Paddy Power has received a nice little payday after claiming €26 million in tax refunds from the Australian tax office.
The hefty one-off payment was given to Paddy Power after Aussie courts ruled that it’s two Australian subsidiaries, Sportsbet and IAS, were entitled to be refunded on tax that was paid between 2005 and 2009.
According to the Irish Independent, half of the €26 million was expected to reach Paddy Power in the form of cash while the other half is expected to be used against future Goods and Services Tax (GST) payable in future years.
"The Federal Court in Australia ruled in favour of Sportsbet's and IAS's interpretation of the relevant GST legislation and the Australian Tax Office has confirmed that it does not intend to appeal the court's decision.
"The relevant legislation was amended in 2010 so the judgment does not impact future periods," the company added.
A nice boost for the company as its stock price fell slightly, down 1.15 per cent at €32.62, during the global market turmoil that affected stocks yesterday.