Western Australia defends Crown Resorts tax cut deal

The Western Australian government has defended a tax deal granted to Crown Resorts International that cuts the amount payable on profits from VIPs from 11 percent to 8 percent.

In return for the deal, Crown agreed to a total minimum tax payment to the government of $45.25 million over the next five years, an increase over the prior-year period.

Lawmakers in favor of the cut said the company needed the reduction because it’s a highly competitive international business.

"It's a low margin business and has a lot of competition," Racing and Gaming Minister Terry Waldron said. "Remember, we've actually put tax rates up on other parts of the business. We made sure we considered this very, very carefully." He said Crown's total tax guarantee was its highest ever.

Crown operates the Crown Perth casino in the state.

 

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