Zeal subsidiary myLotto24 has entered into an agreement with tax authority (Finanzamt) Hanover-Nord, eliminating the risk of potential fines for late payment of taxes while significantly reducing the amount of potential interest.The deal means myLotto24 will – without acknowledging any legal obligation – pay a partial amount of around €54m 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. This total;ed approximately €160.1m as of September 30, 2019.
The Fiscal Court of Hanover (Finanzgericht Hannover) had ruled on November 19 to uphold the appeal by myLotto24 against the assessment of VAT.
The tax authority has meanwhile announced its intention to appeal the decision, but 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 would be refunded to myLotto24.
