UK divisions of ticket resale website Viagogo hit with 15m bill over tax shortfall

"Corporate filings for VGL Services and IFOT Services, both part of the US-listed StubHub group that includes Viagogo, reveal that both firms set aside money to cover costs arising from a transfer pricing inquiry with HMRC relating to the period between 2016 and 2018. Transfer pricing refers to the way in which separate entities within a larger corporate group charge each other for services or goods they provide to one another. Any such transactions should take place at market rates."

"The 15m combined sum set aside by the two companies, both of which are registered to an address on London's Cannon Street, includes interest that HMRC would have earned on the tax receipts, had they been paid, as well as charges for late payment. In their filings, the businesses said they believe HMRC's findings have resulted in double taxation, which is when a business is taxed on the same activity in two different jurisdictions."

"The UK businesses do not directly sell tickets but both supplied group companies during the period in question, according to the accounts, including providing technology and customer services. The firms said they had now changed their transfer pricing policy but would also seek remediation under the UK's tax agreement with other countries, which could result in a future financial benefit. The companies already paid a combined 5.5m earlier this year, but said the timing of further payments and settlement remains unclear."

VGL Services and IFOT Services, UK divisions linked to the US-listed StubHub group including Viagogo, set aside a combined 15m after HMRC concluded they had underpaid duty related to transfer pricing for 2016–2018. Transfer pricing involves intercompany charges that should reflect market rates and tax authorities monitor potential price inflation to shift profits across jurisdictions. The filings state the companies supplied group entities with technology and customer services rather than directly selling tickets. The 15m includes interest and late payment charges; the firms claim double taxation, have revised their transfer pricing policy, seek remediation, and already paid 5.5m.

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