Frasers Group says in the clear over €674m Belgian tax bill
British sporting goods retailer Frasers Group said on Thursday that it was now in the clear with Belgian authorities over an alleged failure to pay a €674m tax bill.
Frasers Group
790.50p
16:40 25/04/24
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
General Retailers
3,915.52
17:09 25/04/24
Frasers, formerly known as Sports Direct, was under investigation by Belgium's tax authorities and its auditor Grant Thornton resigned as a result of the claims.
However, the FTSE 250-listed group said Belgian tax authorities were satisfied with its explanation and that the confusion was due to clerical errors regarding the reclaiming of VAT. Frasers reiterated that it had, in fact, paid the correct amount of tax.
Frasers claimed EU reverse charge rules stated that VAT should not have been paid by the UK entity or reclaimed by the Belgian entity but acknowledged that although the net result was that the correct amount of VAT had been paid, the documentation provided and the process followed was incorrect.
"Frasers Group and its advisers will continue to fully engage and work with the Belgian Tax Authority in order to resolve the smaller remaining matters referred to in the proces verbal as soon as possible," said the group.
"Frasers Group management still believe that it is less than probable that material VAT and penalties will be due in Belgium as a result of the tax audit."
As of 0840 GMT, Frasers shares had ticked up 0.55% to 484.85p.