GGRAsia – NagaWorld reaches deal on new non-gaming tax: report

NagaWorld reaches deal on new non-gaming tax: report

Sep 14, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck

Cambodian casino firm NagaCorp Ltd has reportedly reached an agreement with that country’s Ministry of Economy and Finance regarding a new rate of tax payable on the non-gaming operations of the firm’s flagship casino resort NagaWorld (pictured) in the capital Phnom Penh.

The Cambodian government was said – according to an earlier Cambodian media report – to be conducting an audit of NagaWorld in order to assess its tax liabilities on non-gaming operations.

The Khmer Times newspaper reported on Wednesday that NagaCorp had reached a deal with the government. The media outlet quoted Ros Phirun, deputy director of the finance industry department at the Ministry of Economy and Finance, as saying that the company agreed with the new tax rate computed by the ministry’s technical team.

“The management of NagaWorld already agreed on the revised tax rate over their business operation and have agreed to pay us another US$16.6 million for this year, in addition to the base rate. In total we will get from them about US$23 million this year,” Mr Phirun was quoted as saying.

The ministry official reportedly added that NagaWorld paid the government about US$15 million in taxes in 2015. “Now their business operation is fully functional, both in gaming and non-gaming operations. Because of that, they have agreed to pay us a new revised tax rate,” he added.

Tim McNally, NagaCorp’s chairman, told GGRAsia earlier this month that the company would not “comment on taxation matters”. He added: “We are very co-operative with the government in all aspects of our business.”

Hong Kong-listed NagaCorp is still expanding its operations in Cambodia. NagaCity Walk, a shopping complex linked to NagaWorld, had a soft opening in the week beginning August 15.

The company also announced a placing and subscription agreement to raise approximately HKD930 million (US$120-million) “for the fit-out of the TSCLK Complex … and for general corporate purposes”.

The TSCLK Complex – first mentioned by NagaCorp in a June 2011 filing as a development with retail, conference and hotel facilities – is expected to be operational around the middle of 2017.