Crown Resorts Limited faces shock USD 362M tax bill

In addition the tax office has imposed penalties of USD 112M on Crown taking the total bill to USD 362M at a time when Crown’s balance sheet is already under pressure funding several large development projects.

The amended assessments are in respect of income tax paid for the financial years ending June 30 2009 and 2014. The casino operator said the amended assessments relate to the tax treatment of some of the financing for Crown’s investment in Cannery Casino Resort and other investments in North America.

Crown posted earnings of USD 562M in the last financial year so an unexpected tax bill of USD 250M is not small change, although the group is determined to fight the liabilities and said it will see the ATO in court if necessary.

Crown’s majority owner James Packer has recently stepped down as chairman and director of the company. He also wants to free up time to spend on key development projects underway in Sydney, Melbourne and Las Vegas. The success of its ambitious development pipeline will be critical to a group with a substantial debt pile and a mixed track record on overseas expansion plans. Rumours have also abounded recently that Packer is looking to take Crown Resorts private.