Jan 6 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
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)