Tabcorp to receive AU$83m tax refund
The dispute in question between the two parties related to the taxation of certain payments made to various regulatory authorities for licenses. The company had previously paid the country’s tax regulator the full amount of the disputed taxes but was seeking a refund for a portion of it.
The dispute has recently achieved a resolution, with the company due to receive 83 million Australian dollars as part of a refund. This figure will represent around 20% of the total disputed amount and will bring proceedings brought forward by the taxpayers to a close. The resolution will involve a requirement for the company in the form of a 37 million dollar payment to The Lottery Corporation, which will be carried out following the terms set out by the separation deed between the two firms from back in March of last year.
This will ultimately result in Tabcorp receiving 45 million Australian dollars, which will greatly boost the firm’s financial results at the end of the financial year ending in June next year. Additionally, this resolution will also involve an agreement for future treatments of license fees in terms of taxes, which will be treated in a capital nature.