Tatts Group Limited
(ASX:TTS) will bring in an extra $16.2 million net profit for the full year after settling a Federal Court action against the Australian Taxation Office.
The group says it will get an income tax benefit after resolving the action, which centred on the deductibility of a payment made by Tatts related to its acquisition of Golden Casket Lottery Corporation Ltd in June 2007.
Separately, Tatts and Tabcorp Holdings Limited
(ASX:TAH) have been considering suing the Victorian government over a levy on gaming machines they no longer operate.
The bill amounts to a total of $49.1 million and both companies say the levy has been charged for the full financial year despite them ceasing operation after 46 days, when their licences expired on August 15.
The levy will shave an additional $24.8 million from Tatts' after tax earnings in 2012-13, on top of the $7 million provisioned for.
Tatts generated a net profit of $128.3 million for the first half of the current financial year.
