Crown fined $20m for breaching tax obligations

The Royal Commission in Australia has fined Crown Resorts AU$20m for improperly claiming tax deductions by claiming promotional costs as money paid out in winnings.

Since the Royal Commission brought the findings to light, Crown has accepted it had been wrong to do so and paid approximately $61.5m to the State of Victoria in unpaid tax and penalty interest. The Victorian Gambling Casino Control Commission has now added a $20m fine in addition.

Since receiving its stronger reinforcement powers, VGCCC has used them to take disciplinary action against Crown four times, and the company’s fines now total $250m.

“Crown and other gaming licensees have important obligations to pay gaming taxes to the State,” declared VGCCC Chairperson Fran Thorn. “Not only did Crown breach its obligations by claiming tax deductions to which it was not entitled, Crown also made significant efforts at concealment.

“The VGCCC will not tolerate this behaviour. We expect licensees to comply with their tax obligations and to be transparent in their dealings with us. We have today imposed a significant fine of $20 million on Crown to send a clear message that this type of conduct will be met with strong disciplinary action.

“This fine also sends an important message to other gambling operators about the importance of complying with their obligations to pay gambling taxes and the need for frank and open dealings with the regulator.”

In a related statement, Crown declared that: “These historical breaches, decisions and actions have no place at Crown, and under new ownership and leadership, we are committed to an open, constructive, and transparent relationship with our regulators and stakeholders, as well as improving internal controls and our regulatory reporting requirements.

“Our Future Crown program is driving whole-of-company reform and we are focused on building a Crown that exceeds the expectations of our stakeholders and the community.”