Frasers Group, the renamed Sports Direct business controlled by Mike Ashley, has correctly paid tax in Belgium that had been questioned by the authorities there.

Frasers Group said the Belgian Tax Authority has confirmed in writing that it was satisfied with the retailer’s explanation regarding €491m – or 73% – of the total €674m in question and that VAT has been correctly accounted for.

As far as that sum is concerned, the issue “has been resolved with no payment of VAT liabilities or associated penalties and interest to be made by the company or any member of its group”.

The retailer also updated on ”clerical reporting errors” it had flagged in its interim results. Frasers said: “These historical clerical reporting errors included the paying of VAT to the tax authority by a Frasers Group UK entity on goods shipped to a Frasers Group Belgian entity with a simultaneous reclaim of the same VAT by that Belgian entity.

“Due to EU reverse charge rules, VAT should neither have been paid by the UK entity or reclaimed by the Belgian entity and, although the net result was that the correct amount of VAT due to the tax authority had been paid, the documentation provided and process followed were incorrect.”

The retailer said it would ”continue to fully engage and work with the Belgian Tax Authority” to resolve the smaller remaining matters as soon as possible and that “Frasers Group management still believe that it is less than probable that material VAT and penalties will be due in Belgium as a result of the tax audit”.