Tabcorp to appeal US$52m tax bill

Tabcorp to appeal US$52m tax bill

The amended tax bill relates to a Tatts Group gaming machines licence from 2016. Tabcorp acquired the firm the following year.

Australia.- Tabcorp Holdings has told shareholders that it will appeal against an amended tax bill of AU$71m (US$52.77m) dating back to 2016.

The bill relates to the income tax treatment of licence fees incurred by Tatts Group for gaming machines in New South Wales (NSW). Tabcorp took over Tatts Group at the end of 2017.

Tabcorp said the issue had been disclosed as a contingent liability in its financial statement from June 30 that estimated a cost of AU$62m.

Tabcorp said: “The amended assessment is for a total of AU$71m, including AU$9m in Australian Taxation Office imposed penalty interest, and is expected to be reported as a significant item as part of the 1H21 result.”

The gambling giant said it will appeal the amended assessment with the support of external advice.

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