POLISH FINANCIAL SUPERVISION AUTHORITY
UNI - EN REPORT No3/2017
Date of issue:2017-01-06
Short name of the issuer
INTERNATIONAL PERSONAL FINANCE
Subject
IPF to appeal decision of Polish Tax Chamber
Official market - legal basis
art. 56. 1. 2 of Act on Public Offering.
Unofficial market - legal basis
Contents of the report:
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. £20M 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 Finance Rachel Moran – Investor Relations +44 (0)113 285 6798 / +44 (0)7760 167637 Gergely Mikola - Media (+3620) 339 02 25
Annexes
FileDescription
INTERNATIONAL PERSONAL FINANCE PLC
(fullname of the issuer)
INTERNATIONAL PERSONAL FINANCEFinanse inne (fin)
(short name of the issuer)(sector according to clasification of the WSE in Warsow)
LS11 5BDLeeds
(post code)(city)
Building Three Leeds City Office Park Meadow Lane
(street)(number)
+44 113 285 6700+44 113 245 1675
(phone number)(fax)
(e-mail)(web site)
911347253
(NIP)(REGON)
SIGNATURE OF PERSONS REPRESENTING THE COMPANY
DateNamePosition / FunctionSignature
2017-01-06Gerard RyanDirector