Isle of Man headquartered Playtech has agreed to pay Israeli tax authorities £25 million following an audit that probed 10 years of accounts.

The FTSE 250-listed gambling software development company said that, following a civil tax audit covering 2008 to 2017, the country has made ’transfer pricing adjustments’ relating to Playtech’s activities in Israel.

As a result, Playtech will stump up the cash and no penalties will be imposed as a result of the audit.

Playtech’s head office is in St George’s Court, Upper Church Street, Douglas, and around 10 people work from there.

The additional tax charge will be reflected as an exceptional item in Playtech’s 2018 accounts and payment is expected to be made in the next 30 days.

The news comes just days after Playtech warned it will take an earnings hit of up to £22.5 million in 2019 because of new Italian gambling taxes.

The Italian Senate recently passed the country’s 2019 budget, which includes tax rises on gambling activity.

Playtech’s full-year guidance, which was for adjusted earnings of 320 million euros to 360 million euros (£287.7 million to £323.6 million) as of November, remains unchanged.

More than 5,000 people across 17 global locations work for Playtech which provides software for online casinos, online poker rooms, online bingo games, online sports betting, scratch games, mobile gaming, live dealer games and fixed-odds arcade games online.