Stockholm-listed online gaming operator Mr Green & Co has launched an appeal against an SEK108m (€11.7m) tax bill on its activities in the Austrian market.

The operator said that it has filed an appeal with the Austrian Administrative Court, as well as submitting a complaint to the European Commission as it looks to bring the long-running dispute to an end.

“We contest the tax liability in its entirety and are hopeful that our objections will be given due consideration,” Mr Green chief executive Per Norman said. “We are now seeking recourse through the Austrian courts and the European Commission.”

The dispute, which has been ongoing since October last year, centres around Austria’s gambling legislation, which taxes online casino operations at 40 per cent of gross gaming win. Austria asserts that the law applies to local licence holders, as well as those licensed in other jurisdictions.

However, Mr Green has argued that the legislation is non-compliant with constitutional legislation in Austria, as well as certain European Union directives. It argues that as it is licensed by the Malta Gaming Authority, it is therefore subject to Maltese regulations.

Despite its position, the operator has made a provision of SEK108m, covering the period between January 2011 and August 2014, and has communicated a payment plan to the Austrian tax authority. It says it expects the sum to be paid over the course of 2015 and 2016.

The SEK108m provision has negatively affected the company’s results, leading to a SEK28m net loss in its full-year results for 2014.

Shares in Mr Green & Co AB (Co.Data) (OMX:MRG) were trading down 0.24 per cent at SEK41.50 per share in Stockholm Thursday morning.


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