Jan 6 (Reuters) - Consumer credit lender International Personal Finance (IPF) said on Friday it would appeal against a decision by the Polish tax authority relating to the accounts of its Polish business, Provident Polska, for the 2008 financial year.
The company said the decision involved “a transfer pricing challenge relating to an intra-group arrangement with a UK entity”, as well as “a challenge to the timing of taxation of home collection fee revenues.”
IPF, which provides small personal loans to over 2.7 million borrowers in Europe and Mexico, said it strongly disagreed with the interpretation of the tax authority and added that both items were accepted in previous audits by the same body.
“We will appeal the decision to the District Administrative Court and pay the amounts assessed (about 20 million pounds comprising tax and associated interest) which is necessary in order to make the appeal,” IPF said in a statement.
“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,” it added.
IPF also said it expected a similar decision from the Polish Tax Chamber for the 2009 financial year, which would give rise to a similar liability. (Reporting by Rahul B in Bengaluru; Editing by Mark Potter)