Non-public fairness goal Village Roadshow will struggle a tax workplace ruling to cough up $11 million in again taxes and would come with additional fines.
The theme park and cinema operator, which is topic to a takeover provide from BGH Capital, has been the topic of an Australian Tax Workplace audit since 2016.
Village has offered a number of units of knowledge to the tax workplace because the audit started. In July 2019, the ATO issued a place paper to Village, which responded by August the identical yr.
“The ATO, after contemplating [Village’s] response, issued a Assertion of Audit
Place in March 2020. In July 2020 VRL lodged a request for an ATO unbiased evaluation,” the Village board stated in an announcement to the Australian Securities Change.
“That evaluation didn’t discover in [Village’s] favour, and the ATO has now issued assessments towards [Village’s] totalling roughly $11 million, inclusive of curiosity. It’s anticipated that the ATO can even challenge penalty notices in relation to the underlying challenge.”
Nevertheless, the Village board stated the corporate, which owns and operates Moist ‘n’ Wild and Warner Bros Film World, will contest the ATO’s evaluation and any penalty notices. It stated it’ll additionally search deferral of fee because it believed the ATO’s place is “not supported by precedent”.
“[Village] doesn’t imagine that any materials impression will come up from the tax audit and the assessments.”