UNI - EN REPORT No37/2017
This statement contains inside information
INTERNATIONAL PERSONAL FINANCE PLC ("IPF" or the "Company")
IPF NOTES PROPOSED CHANGES TO POLISH CORPORATE INCOME TAX
The Company notes that yesterday a comprehensive set of proposed changes to Polish Corporate Income Tax was approved by the Polish Government’s Council of Ministers. An official draft of the proposals discussed and approved by the Council has not been issued but is expected to be published imminently. It is expected that the proposals will be submitted to the Polish Parliament for consideration through the usual legislative process and if approved would likely come into force on 1 January 2018.
Based on an earlier draft of the proposals published on Monday 2 October, which the Company is continuing to review, the main impact for IPF would be an increase in tax payable arising from disallowance of tax deductions for expenses linked to certain intra-group transactions. For illustrative purposes, in the absence of the Group taking mitigating action such as replacing the current intra-group credit hedging arrangement with a third party equivalent, the proposals would have resulted in an increase in the Group’s tax charge of around £12M to £14M in 2016. In addition, it would result in a one-time accounting charge in 2017 of up to £30M arising from the write-down of a deferred tax asset.
The proposals may be enacted in their current form or modified through the Polish legislative process and the Company will continue to make the case for their appropriate modification. In addition, work has commenced to evaluate potential changes to our business operations in order to mitigate the impact of this proposed legislation.
The Company will keep the market updated and further details will be communicated in due course.
International Personal Finance will host a conference call for investors and analysts at 07:45hrs (BST) today – Wednesday 4 October 2017. The dial-in details for the call are below.
Dial-in (UK) +44 (0)330 336 9105
Access code 4676477
Investor relations and media contacts
International Personal Finance plc
Rachel Moran – Investor Relations +44 (0)7760 167637 / +44 (0)113 285 6798
Gergely Mikola – Media +36 20 339 02 25
Legal Entity Identifier: 213800II1O44IRKUZB59