© Reuters. Mike Ashley’s Frasers in the clear over bulk of Belgian tax case

LONDON (Reuters) – British sportswear retailer Frasers (L:), formerly Sports Direct , has been informed by the Belgian Tax Authority it is satisfied with the firm’s explanation regarding the bulk of queries over sales tax of 674 million euros ($747.7 million), it said on Thursday.

The tax issue first came to light when Frasers, which is majority owned by Mike Ashley, reported 2018-19 results in July.

“The Tax Authority has now confirmed in writing that it has completed its review of Matter 1 and that it is satisfied with the explanation provided,” Frasers said.

It said “Matter 1” accounted for 491 million euros, or 73%, of the total 674 million euros the tax authority is reviewing.

Frasers said it is not required to make any payment to the authority regarding this part of the review.

The group said it had made some historical clerical reporting errors and would continue to fully engage with the tax authority in order to resolve “the smaller remaining matters”.

“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.”

Shares in Frasers were up 1.1% at 0840 GMT, taking gains over the last year to 80%.

Ashley owns 63.3% of the equity, according to Refinitiv data.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link