Playtech PLC (LON:PTEC) shares slipped on Wednesday after the gaming software firm said it will pay an additional tax of approximately €28mln for the years 2008 to 2017 after reaching an agreement with the Israeli tax authorities.
In a brief statement, the FTSE 250-listed company said the agreement follows a civil tax audit covering the ten fiscal years to 2017 in which the Israeli tax authorities made transfer pricing adjustments in relation to certain functions performed by the Playtech group in the country during the period.
READ: Playtech expects new Italian gambling tax to reduce 2019 adjusted earnings by around €20mln-€25mln
The group added that no penalties are to be imposed as a result of the audit, and the agreement covers the entirety of the Playtech group's activity in Israel.
It said the additional tax charge will be reflected as an exceptional item in Playtech's 2018 accounts and payment is expected to be made in the next 30 days.
In early morning trading, Playtech shares were 0.8% lower at 381.90p.
On Christmas Eve, Playtech had said it expects a new Italian tax on gambling to reduce its 2019 adjusted underlying earnings (EBITDA) by approximately €20mln-€25mln before any mitigating actions.
The firm had noted that on Sunday 23 December 2018 the Italian Senate passed the government's 2019 budget which includes legislation to increase taxation on various types of gambling activities.
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