Web Travel Group (ASX:WEB) shares crashed as much as 41% in early Feb. 6 trade after the company revealed its Spanish subsidiary is the subject of a comprehensive audit by the Spanish Tax Agency.
The investigation, spearheaded by the Special Delegation of the Balearic Islands, targets a broad window of financial activity: direct taxes covering April 2021 to March 2024 and indirect taxes from January 2022 to December 2025.
The timing is particularly sensitive for the B2B accommodation giant, which recently rebranded and pivoted to focus on its WebBeds division following the demerger of its consumer-facing Webjet OTA business in late 2024.
While the company stated it is "cooperating fully" with authorities and will adhere to continuous disclosure obligations, the market reacted with immediate volatility, sending shares to a five-year low near $2.50.
The regulatory hurdle adds fresh pressure to the group as it navigates its first full year as a standalone entity amid heightened scrutiny of its European operations.