Tabcorp (ASX:TAH) receives $71 million tax hit

Tabcorp (ASX:TAH) has been hit with a $71 million tax ruling from the Australian Tax Office.

The amended tax assessment relates to the 2016 taxation year regarding the income tax treatment if license fees incurred by Tatts Group in relation to monitoring gaming machines in NSW.

The amended assessment includes $9 million in Australian Taxation Office imposed penalty interested and is expected to be reported as a significant item as part of the 1H21 result.

Tabcorp says it will appeal the amended assessment given external advice claims "on the balance of probability that the deductions are allowable."

Shares in Tabcorp (ASX:TAH) are trading 0.39 per cent higher at $3.90

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Source: Finance News Network