Crown Resorts Faces Additional $13M Fine for Tax Fraud
Australian casino operator Crown Resorts just can't seem to catch a break. Ever since state-led investigations found that they're unfit to hold a casino license, they've been involved in money-laundering and data manipulation schemes and now they have to pay for tax evasion. This has caused them to respond to official inquiries in multiple states, with their tax history being closely scrutinized.
Investigations have already revealed that the casino operator intentionally tried to manipulate their tax returns. For example, the Crown Melbourne property in Victoria is at the center of the latest controversy. While other states may also look into Crown's tax history, Victoria has decided they owe a hefty AU$20 million (US$13 million) fine.
The Victorian Gambling and Casino Control Commission (VGCCC) is the one who handed down the latest penalty. They tracked down discrepancies in Crown Melbourne's tax filings that happened due to the company falsely claiming deductions. Crown diminished their tax liability by listing different marketing promotions as winnings they'd paid out to customers.
This practice had been going on for years and even Crown's own legal teams had asked questions about it. Despite their concerns, Crown's executives pushed through the filings and continued the practice even after Victoria launched their state-led inquiry. The VGCCC also found that the company tried to cover up their actions.
Crown eventually did acknowledge their wrongdoing during the royal commission inquiry. They said it was part of the "old" Crown regime and that the new one wouldn't allow it to happen. However, Crown had already paid AU$61.5 million (US$42.28 million) once Victoria calculated the actual amount owed. Around two-thirds of that was to correct the tax filing, with the rest being a penalty.
The VGCCC fined Crown AU$20 million (US$13 million) to drive home the point that gaming operators must always abide by rules. They could've issued a more severe fine of AU$28 million (US$19.25 million) but took into account Crown's remorse for its actions.
Legislative Assemblyman Danny O'Brien isn't quite convinced of their remorse or their worthiness of keeping their license. He told the Australian Associated Press, "One wonders when the dramas with Crown will ever end."
Crown had already paid out AU$250 million (US$171.87 million) in fines from the Victorian government. Now, they have to pay the new penalty within six months. They haven't suggested appealing it yet. This latest fine is in addition to the AU$450 million (US$309.37 million) Crown might have to pay the Australian Transaction Reports and Analysis Centre. A federal judge will decide whether the financial watchdog's fine should stand in the coming month.
With a total of AU$700 million (US$481.25 million) in fines, Crown's purchase by Blackstone last year for US$6.6 billion looks even more of a loss.
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Source: www.casino.org
