Tabcorp has been refunded AU$83m (US$53.4m) from the Australian Taxation Office (ATO) after resolving a tax dispute. The refunded amount represents 20% of the disputed tax liabilities and interest.
The dispute Tabcorp held with the ATO was in relation to the income tax treatment of payments for a range of licences and authorities. Tabcorp paid the Commissioner the disputed amount of tax liabilities and interest in full.
As part of the settlement, the ATO will refund Tabcorp approximately AU$83m, representing 20% of the disputed tax liabilities and interest.
Last week, Tabcorp was handed the biggest fine the Victorian Gambling and Casino Control Commission (VGCCC) had ever given, with the company being fined AU$1m for a system outage that occurred in 2020.
Tabcorp’s wagering and betting system went down for 36 hours on 7 November 2020 during the Spring Racing Carnival; and the company failed to inform the VGCCC, consequently breaching its licence.
In turn, Tabcorp is also required to pay approximately AU$37m to The Lottery Corporation Limited (TLC) under the terms of the Separation Deed dated 25 March 2022 between Tabcorp and TLC.
An investigation was launched but directions were issued after Tabcorp failed to voluntarily provide adequate information about the outage.
With all that being said, Tabcorp should be left with circa AU$45m in tax benefits (after deducting its fine and payment to TLC), which we can expect to see in its FY24 financial report.
