Mike Ashley's Frasers Group says it has settled with the tax authorities in Belgium after a long-running dispute put its banking lines of credit in jeopardy.
The group which owns Sports Direct and department store chain House of Fraser had been investigated by the Belgians over an apparently unpaid 674 million euro (£570 million) tax bill.
In January, Frasers Group said the first part of the inquiry - over a 491 million euro (£416 million) sum - had been resolved after the tax authority accepted it was down to a clerical error. Frasers' auditor Grant Thornton resigned after the anomaly first emerged.
Today, Frasers said it had resolved all remaining matters referred to in a "proces verbal" along with other "historic tax matters" by paying a small sum.
The group said: "No material sums of tax or penalties are due to be paid in Belgium by Frasers Group as a result of the settlement.
"Frasers Group has taken the commercial decision to settle these matters now given the uncertainty is affecting Frasers Group's banking lines and its suppliers' credit insurance where, due to store closures as a result of the current Covid-19 crisis, Frasers Group understands the majority of new credit insurance cover has been withdrawn for the time being. Frasers Group would also note that it has currently not been accepted as eligible for the Covid Corporate Financing Facility (CCFF).
"For the avoidance of doubt, the €674m of disputed VAT including penalties within the 'proces verbal' has been fully and finally settled for an immaterial amount."
