Tabcorp Receives AU$83 Million Tax Refund: What You Need to Know
Date: 2023-09-11 Author: Dima Zakharov Categories: CASINO
In recent news, Tabcorp, a prominent Australian gambling and entertainment company, has hit the headlines with a substantial tax refund. After a dispute with the Australian Taxation Office (ATO), Tabcorp is set to receive AU$83 million (approximately US$53.4 million) as a refund. This article will delve into the details of this significant development and explore the implications for Tabcorp's financial future.
Tabcorp's Tax Refund:
Tabcorp found itself entangled in a disagreement with the ATO concerning the tax treatment of payments related to various licenses and authorities. To resolve the issue, Tabcorp decided to pay the disputed tax liabilities and interest in full, amounting to AU$83 million. As part of the resolution, the ATO agreed to refund Tabcorp an equivalent amount, representing 20% of the disputed tax liabilities and interest.
Biggest Fine from VGCCC:
In addition to the tax refund, Tabcorp recently faced another major setback. The Victorian Gambling and Casino Control Commission (VGCCC) imposed a hefty fine of AU$1 million on the company. This fine was the result of a system outage that occurred in 2020, during the Spring Racing Carnival. Tabcorp's wagering and betting system experienced a 36-hour downtime on November 7, 2020. Even more concerning, the company failed to inform the VGCCC, breaching its license agreement.
Payment to The Lottery Corporation Limited (TLC):
As if the tax refund and fine weren't enough, Tabcorp is also obligated to make a payment of approximately AU$37 million to The Lottery Corporation Limited (TLC). This requirement stems from the terms of the Separation Deed dated March 25, 2022, between Tabcorp and TLC.
Outcomes and Implications:
Considering these developments, Tabcorp is expected to end up with around AU$45 million in tax benefits after accounting for the fine and payment to TLC. These tax benefits are anticipated to be reflected in Tabcorp's financial report for the fiscal year 2024.
