Tabcorp set to obtain tax refund of $53.4 million

Australian gaming firm Tabcorp has successfully resolved a dispute with the Australian Taxation Office (ATO) regarding the income tax treatment of payments related to licenses and authorities. The resolution will result in Tabcorp receiving a substantial tax refund of AU$83 million (approximately $53.4 million).

As part of the agreement, Tabcorp had previously paid the full disputed amount of tax liabilities and interest to the Commissioner. In return, the ATO will refund approximately AU$83 million, equivalent to 20% of the disputed tax liabilities and interest. Furthermore, all ongoing legal proceedings initiated by the taxpayers involved will be dismissed.

However, Tabcorp is also obligated to make a payment of around AU$37 million ($23.8 million) to The Lottery Corporation Limited (TLC), pursuant to the Separation Deed signed on March 25, 2022. This payment is related to the demerger of TLC, which oversees the Tatts Lotto and Keno business across Australia’s six states, from Tabcorp’s gaming and wagering division.

In its financial statements for the year ending June 30, 2024, Tabcorp will recognize a benefit of approximately AU$45 million after tax, categorized as a significant item. This settlement encompasses future license fees applicable to the renewal of existing licenses.

Notably, earlier this month, Tabcorp faced a fine of AU$1 million ($650,000) imposed by the Victorian Gambling and Casino Control Commission (VGCCC). The penalty was related to Tabcorp’s non-compliance with directives during an investigation into a system outage in 2020.

Original story by: Asia Gaming Brief