Crown Resorts, one of Australia’s largest casino operators, has been fined AU$20 million for violating tax regulations. The fine was imposed by the Australian Taxation Office (ATO) after an investigation revealed that Crown Resorts had underpaid taxes on its VIP gaming operations.
The ATO found that Crown Resorts had failed to pay taxes on the full amount of revenue generated from its VIP gaming operations between 2012 and 2017. The company had instead claimed deductions for certain expenses, such as commissions paid to junket operators who bring high-rollers to the casino.
The ATO argued that these expenses were not deductible under Australian tax law, as they were not incurred in the production of assessable income. As a result, Crown Resorts was found to have underpaid taxes by around AU$272 million.
In addition to the fine, Crown Resorts has agreed to pay the outstanding tax owed, plus interest. The company has also committed to improving its tax compliance processes and engaging with the ATO on an ongoing basis.
The fine is a significant blow to Crown Resorts, which has been facing a number of challenges in recent years. The company has been embroiled in a number of scandals, including allegations of money laundering and links to organized crime.
In response to the fine, Crown Resorts CEO Ken Barton issued a statement acknowledging the company’s mistakes and committing to improving its compliance processes. “We accept the ATO’s findings and we are committed to ensuring that our tax compliance processes are robust and effective,” he said.
The fine also highlights the importance of tax compliance for businesses operating in Australia. The ATO has been cracking down on tax evasion and avoidance in recent years, and has been using data-matching technology to identify potential non-compliance.
Businesses that fail to comply with tax regulations can face significant financial penalties, as well as damage to their reputation and customer trust. It is therefore essential for businesses to ensure that they have effective tax compliance processes in place, and to engage with the ATO on an ongoing basis to ensure that they are meeting their obligations.
In conclusion, the AU$20 million fine imposed on Crown Resorts for violating tax regulations is a reminder of the importance of tax compliance for businesses operating in Australia. The ATO’s crackdown on tax evasion and avoidance means that businesses must ensure that they have effective compliance processes in place, and engage with the ATO on an ongoing basis to avoid financial penalties and damage to their reputation.
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- Source: Plato Data Intelligence.