International Personal Finance Plc IPF to appeal decision of Polish Tax Chamber (5192T)
06 January 2017 - 6:00PM
UK Regulatory
TIDMIPF
RNS Number : 5192T
International Personal Finance Plc
06 January 2017
This announcement contains inside information
IPF to appeal decision of Polish Tax Chamber
International Personal Finance's home credit company in Poland,
Provident Polska, is to appeal a decision received from the Polish
Tax Chamber (the upper tier of the Polish tax authority) on 5
January 2017 with respect to its 2008 financial year. The decision
involves a transfer pricing challenge relating to an intra-group
arrangement with a UK entity together with a challenge to the
timing of taxation of home collection fee revenues.
We strongly disagree with the interpretation of the tax
authority having received legal opinions from leading advisors as
to the strength of our case. In addition, during a previous tax
audit by the same tax authority, both items were challenged and the
company's treatment of them was accepted as correct. Provident
Polska's treatment of these items has not changed since then.
We will appeal the decision to the District Administrative Court
and pay the amounts assessed (c. GBP20M comprising tax and
associated interest) which is necessary in order to make the
appeal. The payment of this sum is not a reflection of our view on
the merits of the case and accordingly it will be recognised as a
non-current financial asset in our group accounts. As we believe
our case to be very strong, no provision will be recognised against
this asset and there will be no charge to the income statement as a
result of this decision. We also intend to initiate a process with
the UK tax authority aimed at ensuring that the intra-group
transaction is not subject to double taxation but is taxed in
accordance with international tax principles.
We expect to receive the same decision shortly from the Polish
Tax Chamber in respect of the 2009 financial year which would give
rise to a substantially similar liability to that for 2008. 2010
remains under audit and all subsequent years remain open to future
audit.
International Personal Finance and Provident Polska do not adopt
aggressive tax strategies as evidenced by Provident Polska's
average effective tax rate since 2008 which exceeds the Polish
corporate income tax rate of 19%.
International Personal Finance will host a conference call for
investors and analysts at 08.30hrs (GMT) today - Friday 6 January
2017.
Dial-in (UK) +44 (0)330 336 9411
Dial-in (USA) +1 719-457-1036
Confirmation
code 3119392
Investor relations and media contacts:
International Personal Rachel Moran - Investor
Finance Relations
+44 (0)113 285 6798 / +44
(0)7760 167637
Gergely Mikola - Media
(+3620) 339 02 25
This information is provided by RNS
The company news service from the London Stock Exchange
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