Aussie Tax Office’s Tax Stinger!
The Australian Tax Office has just stung the Crown Resort Casino with a tax bill that is out of this world. The original bill – imposed on James Packer’s Crown Resorts – was for underpayment of $250 million alongside a hefty fine of $112 million; thus bringing the total bill to a whopping $362 million.
The tax bill has arised from when Packer, back in 2007, attempted to venture into the United States with the purchase of the Cannery Casino Resorts (CCR) for a princely sum of $1.75 billion. This deal came with four casinos resorts that were located in Nevada and Pennsylvania. Packer, who at the time of writing owns just more than half of Crown Resorts, wanted to establish his highly successful brand in the USA, but unfortunately due to the economic downturn, was forced after just a year to close up shop in the States and write down billions upon billions of Dollars.
Luckynuggetcasino.com has ventured into why James Packer’s business has had this unfortunate bill thrusted upon them!
It’s from outta nowhere!
The Australian Tax Office has been criticised for springing the bill up after seven years, which would be a rude shock for any company. Crown Casino has responded with this statement:
“Crown Resorts is a model corporate citizen and pays its fair share of taxes. In financial year 2015, Crown paid more than $640 million in taxes to all levels of Australian governments, which amounts to almost two-thirds of Crown’s Australian normalised profit before tax.”
Since the company has ventured out over the last few years acquiring a variety of assets, this surprise bill could cause a variety of setbacks for the business. Goldman Sachs has come out to say that the unexpected fine could pose a huge negative for the businesses’ shareholders. If this occurs on a per share basis then this could result in a net reduction of $0.50 per share, which would be a huge blow to the fortune of key shareholders. If the Australian Tax Office insists on payment up front for the fine this could push their finances into the red!
Worse news yet for Packer’s business; this fine came just one week after new tax commissioner Chris Jordan has insisted the government will pursue businesses through the courts as opposed to making a settlement with businesses currently in arrears. Not great new for James Packer and Crown Resorts Casino and definitely not good news for shareholders.
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