Tabcorp announces plans to appeal AU$71m tax bill
Tabcorp has announced its intentions to appeal against an AU$71m ($52.5m) tax bill incurred by Tatts Group in 2016.
The Australian operator stated that it received an amended tax assessment relating to licence fees run up by Tatts Group, which it acquired in December 2017, for the monitoring of gaming machines in New South Wales (NSW), dated for the 2016 taxation year.
Tabcorp mentioned that it disclosed a contingent liability in the relation to the matter of AU$62m post tax in its June 2020 financial statement, but the amended assessment has since been corrected to AU$71m to include an AU$9m penalty interest imposed by the Australian Taxation Office.
The amount will be reported as a significant item as part of the operator’s H1 2021 financial results. Tabcorp also said that it will appeal the amended amount and that it “retains the view, supported by external professional advice, that on the balance of probability that the deductions are allowable.”
The news comes amid a difficult few months for the operator. In October, Tabcorp announced a 6% year-on-year decline in revenue for Q3, while last month, it was fined AU$30,000 after being found guilty of breaching NSW gambling advertising laws.
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