Tabcorp announces plans to appeal against AU 71 million tax bill
Tabcorp announced its intention to appeal AU 71 million ($ 52.5 million) tax bill incurred by Tatts Group in 2016.
The Australian operator said it had received a revised tax assessment of the license fees charged by the Tatts Group, which it acquired in December 2017 for monitoring slot machines in New South Wales (NSW), dated fiscal year 2016.
Tabcorp mentioned that it disclosed a contingent liability on AU 62 million after tax $ in its June 2020 financial statements, but the revaluation has since been adjusted to AU 71 million to take into account the AU 9 million penalty interest imposed by Australian Tax Office.
The amount will be shown as a significant item in the operator's financial results for H1 2021. Tabcorp also said it would appeal the revised amount and that it "retained its view, supported by external professional advice, that a likely set-off is acceptable."
The news came in a few difficult months for the operator. In October, Tabcorp announced a year-on-year decline in third-quarter revenue, while last month it was fined AU 30,000 $ after being found guilty of violating NSW gambling advertising laws.