Tabcorp receives AU$83 Million tax Refund after ATO settlement

Australian bookmaker company Tabcorp has just received a refund of AU$83 million (US$53.4 million) from the Australian Taxation Office (ATO) after resolving a standing tax dispute.

This refund accounts for 20% of the disputed tax liabilities and interest that were, in question.

The dispute centered around how payments related to licenses and authorities were treated for income tax purposes.In addition to this tax refund, Tabcorp has made headlines recently due to 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 involved 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 approximately AU$45 million. The company’s financial statements for the year ending June 2024 will show the impact of this gain, which will be highlighted as a noteworthy entry.

Moreover, the settlement clearly defines how Tabcorp will handle license fee renewals, which should be considered investments with influence, on forthcoming financial outcomes.

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