Australian betting site company, Tabcorp recently received a refund of AU$83 million (US$53.4 million) from the Australian Taxation Office (ATO) after resolving a tax dispute.
This refund accounts for 20% of the disputed tax liabilities and interest that were, in question.
The dispute revolved around how payments related to licenses and authorities were treated for income tax purposes.In addition to this tax refund, Tabcorp made headlines recently with a fine of AU$1 million imposed by the Victorian Gambling and Casino Control Commission (VGCCC).
The fine was a result of a system outage that occurred during the 2020 Spring Racing Carnival lasting for 36 hours.
Tabcorp’s failure to promptly inform the VGCCC about the incident resulted in a breach of its license terms.As part of the settlement with the ATO, Tabcorp has also agreed to pay AU$37 million to The Lottery Corporation Limited (TLC) as, per an agreement reached in March 2022.
This agreement involves separating TLC’s lottery operations from Tabcorp’s wagering, media, and gaming services.Despite facing these fines and making payments, Tabcorp expects to gain a tax benefit of AU$45 million.The impact of this gain will be reflected in the company’s statements for the year ending June 2024, and it will be marked as a significant entry.
Additionally, the settlement clearly outlines how Tabcorp will manage license fee renewals, which should be viewed as investments affecting financial outcomes.
