Swedish online betting game developer Net Entertainment has been dealt a blow in its tax dispute with the government of Sweden, as the country's tax agency has ruled that the firm will have to pay tax on revenues generated in Malta.
Net Entertainment was handed the loss by The Administrative Court, which said that the group will have to pay additional taxes of 92.1 million SEK ($12.4 million USD).
For its part Net Ent disagrees with the ruling, and is filing an appeal. The company also issued a statement on the matter, saying: “NetEnt insists that the company has followed applicable laws for taxation of its operations and will appeal the decision to the Administrative Court of Appeal."
“The company believes that it is more likely than not that the Administrative Court of Appeal will rule in NetEnt’s favour. This assessment is supported by the company’s expert advisers. Therefore the company does not currently see the need to make any provision in the accounts for possible additional taxes related to this matter.”