More than one casino in Nepal is behind on their taxes, and they have until Thursday, March 8, 2018, to settle the issue before they are taken to court. The Kathmandu Post ran a news piece about Nepal’s Department of Tourism, which is going to start going to specific casinos looking for their taxes. Casino Rad at the Radisson Hotel, Casino Royale at Hotel Yak, and Casino Venus at Malla Hotel was told Monday they would need to pay the millions they owe in taxes.
According to the statement, the tourism department officials will file court cases with the casino operators if they do not settle the tax debt.
A tourism official said the casinos had been given a three-day ultimatum regarding the tax default. If the casinos and mini-casinos do not pay, they are going to find a punishment is handed out through the law.
The Nepalese government and the three casinos have already had issues before regarding the tax payments. In 2014, the casinos went to court against the government. The government was contending that they would close the casinos for failure to fulfill the Casino Regulation of 2013. The government also took away casino operating licenses at the time.
Casino Resistance in 2014
The three casinos did not want to follow the government’s request and requested the issue go before the Supreme Court. The High Tribunal heard from both parties and allowed the casinos to remain open. The government is now claiming the casinos have not adhered to the Supreme Court order due to a lack of taxes being paid. The casinos need to follow through with their financial obligations to adhere to the laws.
Each casino operator has to pay a little under $192,000 in a fee to get a license, and they much spend about $289,000 for an “annual royalty” fee to operate. There are nine casinos in Nepal, including the Tiger Palace Resort. The Tiger Palace is in Kothiawa, Bhairahawa. It is the newest casino to be opened in the country.
Records are showing the Casino Royale, operated by Surendra Sign owes the government thousands and is still under the Gilt Investment. The casino has made installment payments of $340,000, but it is not enough according to the tourism officials. They have not renewed their license, and this makes it an impossibility for them to operate within Nepalese laws. Casino Rad and Casino Venus also owe the government royalty payments.