Mike Ashley’s Frasers Group has claimed it is in the clear with Belgian authorities over an alleged failure to pay 674 million euros in tax.
The company formerly known as Sports Direct PLC had been investigated over the sum equivalent to £570 million and its auditor Grant Thornton resigned in the wake of the claims.
But Frasers said today that the Belgian tax authorities were satisfied with the group’s explanation and that the confusion had been down to clerical errors over the reclaiming of VAT and that the correct about of tax had been paid.
EU reverse charge rules dictated that VAT should “neither have been paid by the UK entity or reclaimed by the Belgian entity”, it said.
Frasers Group said in a statement: “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.”
Sports Direct was renamed Frasers Group last year, after the Glasgow based department store chain taken over by Ashley in 2018.