Crown Melbourne has been hit with a $20 million fine after it was found to have claimed tax deductions in Victoria it was not entitled to.
The Victorian Gambling and Casino Control Commission revealed the financial penalty on Friday in the wake of a royal commission into the casino operator.
The inquiry uncovered how Crown “improperly claimed tax deductions by including the costs of certain promotional activities as amounts paid out as winnings”.
Crown was also found to have “deliberately concealed the nature of these deductions” from the Victorian Commission for Gambling and Liquor Regulation, the VGCCC’s predecessor.
“Not only did Crown breach its obligations by claiming tax deductions to which it was not entitled, Crown also made significant efforts at concealment,” VGCCC chairperson Fran Thorn said in a statement.
“The VGCCC will not tolerate this behaviour. We expect licensees to comply with their tax obligations and to be transparent in their dealings with us.
“We have today imposed a significant fine of $20 million on Crown to send a clear message that this type of conduct will be met with strong disciplinary action.”
Crown has since paid about $61.5 million to the state of Victoria, including unpaid casino tax and penalty interest.
The royal commission discovered the deductions through a document “setting out the quantum of unpaid casino tax among voluminous documents” that Crown had disclosed for other purposes.
In a statement responding to the fine, Crown Melbourne said it accepted the VGCCC’s outcome relating to “historical breaches”, with the practice ending two years ago.
“These historical breaches, decisions and actions have no place at Crown,” Crown Melbourne CEO Mike Volkert said.
“And under new ownership and leadership, we are committed to an open, constructive, and transparent relationship with our regulators and stakeholders, as well as improving internal controls and our regulatory reporting requirements.
“Our Future Crown program is driving whole-of-company reform and we are focused on building a Crown that exceeds the expectations of our stakeholders and the community.
“This practice ceased in 2021 and Crown has since made the required payments to meet its casino tax obligations.”
Crown has now been on the receiving end of disciplinary action from the VGCCC four times, and copped fines totalling $250 million.