Update on Polish tax audit

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International Personal Finance plc

Update on Polish tax audit

We are pleased to announce that the Polish tax authority has now closed its audits of the 2010, 2011 and 2012 financial years, having issued our Polish home credit company, Provident Polska, with a report on its findings. The report includes a challenge to the pricing of an intra-group arrangement with a UK Group company.  In view of the ongoing nature of this arrangement, the tax authority has also proposed adjustments to the tax base for later years. Provident Polska has not contested these findings and has accepted the tax authority's proposed adjustments for the years 2010 to 2017 inclusive.  The tax returns for these eight years have been amended and re-filed in line with the tax authority's position. This gives rise to an overall payment of around £3.8m for these years (2010 to 2017), which the company has now paid.

The court proceedings with respect to the 2008 and 2009 financial years continue to be stayed pending the outcome of a process involving the UK and Polish tax authorities aimed at ensuring that the intra-group arrangement in question is taxed in accordance with international tax principles.

Gerard Ryan, Chief Executive Officer of IPF plc said: "We are delighted to be able to announce this very positive development with respect to the financial years 2010 onwards, particularly the greater certainty that this brings for the Group.  In the meantime, we are continuing our work on the options for resolving the 2008 and 2009 position as quickly as possible."  

Investor and analyst conference call

International Personal Finance will host a conference call for investors and analysts at  14.00hrs (BST) today, Thursday 24 October.    Please dial-in 10 minutes before the start of the call.

A copy of this statement can be found on our website - www.ipfin.co.uk

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