An Australian federal court has ruled that the amount of taxes the company must pay when bringing in VIP gamblers on junkets has been “excessive.”
Crown launched its legal challenge two years ago, disputing whether the cost of commissions and rebates it paid out for junket tours could be included in calculating their tax payment obligations.
Federal Court Justice Jennifer Davies ultimately agreed with Crown that the Australian Taxation Office’s assessments were calculated in an unfair manner, and that the company’s tax burden should be correspondingly reduced.
Crown was challenging the tax assessments for its Melbourne casino between 2010 and 2015, and for two separate periods between October 2007 and July 2012 for its Perth casino.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.