KUALA LUMPUR (Oct 26): Cocoaland Holdings Bhd was told to pay additional tax of RM4.06 million plus a 45% penalty of RM1.83 million arising from rejected reinvestment allowance it claimed for the years of assessment 2010 to 2014.

In a filing with Bursa Malaysia today, the group said its wholly-owned subsidiary Cocoaland Industry Sdn Bhd (CISB) has been served with a letter from the Inland Revenue Board of Malaysia (IRB) dated Oct 19 this year on the said tax.

“The above mentioned additional income tax and penalty imposed by the IRB is mainly due to the reinvestment allowance claimed on certain plant and machinery that was disallowed on the basis that the capital expenditure incurred did not qualify and meet the requirements stated in Paragraph Eight of Schedule 7A to the Income Tax Act 1967,” the filing read.

Cocoaland said CISB has engaged with tax consultants on the basis of the tax audit findings raised by the IRB and will appeal accordingly.

The group’s share price fell two sen or 0.71% to RM2.80 today, giving it a market capitalisation of RM638.35 million.

Year-to-date, the counter has gained 38% from RM2.03 on Jan 2 this year.