EcoFirst Consolidated Bhd is seeking the advice of its solicitors on how it would handle the RM35.47 million lawsuit filed by the Inland Revenue Board (IRB) against it.
The case comes after IRB raised the additional income tax assessment of Pujian Development Sdn Bhd (PDSB), a wholly owned subsidiary of EcoFirst, for the assessment year 2004 to RM30.71 million.
Disagreeing on the basis of the assessment, PDSB had appealed to the IRB, which in turn forwarded the appeal form to the Special Commissioners of Income Tax (SCIT).
Both parties had been instructed by SCIT to attend a hearing on 23 and 24 July 2019.
“PDSB has not paid the additional assessment pending the outcome from the SCIT and hence a tax penalty of 10 percent amounting to RM3.07 million was imposed on the outstanding additional assessment,” said EcoFirst.
With the additional assessment and tax penalty remaining outstanding after 60 days from the payment deadline, IRB imposed a five percent tax penalty amounting to RM1.69 million.
As such, IRB is claiming a total amount of RM35.47 million, a five percent interest per annum on the said amount from the judgment date to the date of realisation, costs and other reliefs that the court deems fit.
“Upon consulting its solicitors, PDSB is of the view that there are reasonable grounds to challenge the claims. In this regard, at this juncture, the company is not able to ascertain the financial impact arising from the claims,” said EcoFirst.
Nonetheless, EcoFirst does not expect the claims to materially affect the operations of the group.
It revealed that the court has set the suit for case management on 5 October 2017.
“Any further material development of the above matter will be announced in due course,” it added.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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