The Tabcorp-owned Star City casino has won a legal victory against the Australian Taxation Office over a $60 million tax bill, in the latest stage of a dispute over deductions claimed 13 years ago.
The matter centred on Star City claiming tax deductions for fees that it pre-paid in relation to the occupancy of the casino site in Sydney. The total amount pre-paid was $120 million. The ATO disallowed Star City’s entitlement to those tax deductions and imposed penalties.
This issue dates back to 1994. Tabcorp inherited this issue when it acquired Star City in 1999.
The Tax Office argued that Tabcorp owed $31.6 million in tax, as well as penalties and interest totalling $27.2 million which had been accruing since 1994.
As disclosed in Tabcorp’s 2007 Financial Report, the Group has provided in full for the unpaid primary tax in dispute of $31.6 million, and penalties and interest charges of $27.2 million.
The company is expected to claim deductions on the past four years.
The ATO has 21 days to appeal the judgment.
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