Boost for Mike Ashley as Belgian tax dispute is partly resolved
Frasers Group – the Shirebrook-based retail giant formerly known as Sports Direct – has announced that a long-running dispute with Belgian tax authorities has been partly put to bed.
Last year, the company became embroiled in a row over an €674 million VAT bill which forced it to delay publishing its results.
While the dispute is still ongoing, Frasers says Belgian authorities have concluded their investigation into a €491 million chunk of the total and are “satisfied with the explanation provided” for non-payment.
Frasers insists that “VAT has been correctly accounted for in Belgium.”
In a statement, the company said: “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. 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.”
The news comes after Frasers’ share price rocketed to a near four-year high in December.
The Group, established by chief executive Mike Ashley in 1982, owns a variety of high street retailers including House of Fraser, Game and Jack Wills.
