Gtech announces an agreement with the Italian Tax Agency
GTECH S.p.A. (the “Company”) announced that it has reached an agreement with the Italian Tax Agency (“Agenzia delle Entrate”) for the settlement of certain tax matters regarding the Company and one of its subsidiaries.
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In particular, the tax matters relate to:
the corporate reorganization and subsequent restructuring of certain intercompany financing transactions related to the acquisition of Gtech in 2006;
a proceeding regarding the Bingo game in Italy during 2002-2004; and
the acquisition of going concerns in the gaming machine sector during 2007-2008.
The agreement involves total charges of €34.7 million in 2013, while €6.3 million have been previously provisioned by the Company.
The matters settled were of an interpretative nature.
GTECH believes that the Company and its subsidiary have not violated any norm or principle of the Italian tax system and, furthermore, it should be noted that there are no precedents of jurisprudential practices or opinions which might indicate the presumed illegitimacy of their conduct.
GTECH and its subsidiary have therefore agreed to settle the above-mentioned disputes taking into account the lengthy legal process to resolve such controversies, the related costs that further disputes would create, and the uncertainty of their outcomes.