Obligation was imposed by Cambodia gov't

NagaCorp to pay additional USD 16.6M in non-gaming tax

The government audited NagaWorld last year after it found “discrepancies” in its 2014 and 2015 financial reporting.

Cambodia 
| 14/07/2017

The announcement was made by the country's Ministry of Economy and Finance (MEF) officials. Ros Phirun, deputy director-general, said the final sum will be subject to negotiation between the authorities and the top Asian operator.

“From now on and for every year we will make NagaWorld pay at least $16 million on their non-gaming operations,” Ros Phirun, deputy director-general of the MEF’s Finance Industry Department said in report cited by the Phonm Penhn Post.

On Monday, NagaCorp, the Hong Kong-listed parent company of NagaWorld, reported a net profit of $150.6 million from its Cambodia operations during the first six months of the year, up 20.3 percent over the same period in 2016.

Auditors found that the company had previously claimed an exemption on non-gaming revenue taxes, citing a 2006 agreement that granted it a seven-year grace period to complete construction of its flagship 700-room hotel and casino in Phnom Penh. The term of the agreement, however, ended in 2013.

After poring over NagaWorld’s 2014 and 2015 financial statements, government auditors levied a bill of $16.6 million in back taxes on non-gaming revenue, which includes revenue from the complex’s hotel and restaurants.

Yogonet.com/phnompenhpost.com

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