KUALA LUMPUR (Sept 21): The Inland Revenue Board is suing Mega First Corp Bhd’s subsidiary to claim RM26.33 million in owed tax, but the company may challenge the suit on the grounds that the assessments for the years 2009 and 2010 cited by the board are statute barred.

IRB served the writ of summons and the statement of claim on Idaman Harmoni Sdn Bhd, a 65% subsidiary of Mega First.

“Based on the advice from both the tax consultants and solicitors, Idaman Harmoni is of the view that the assessments raised by the IRB are statute barred and erroneous in law,” Mega First said in a filing with Bursa Malaysia.

Idaman Harmoni has reasonable grounds to challenge the claims, the utilities and property development firm said, adding that the High Court has fixed the case for case management on Oct 5.  

“At this juncture, the company is not able to ascertain the financial impact arising from the claims. The claims, however, are not expected to have any material operational impact on the Mega First group,” said Mega First.

IRB had issued the notice of assessments to Idaman Harmoni last October, to claim the owed tax and additional taxes.  

Mega First said the additional taxes were related to a joint-venture project between Idaman Harmoni and IJM Corp Bhd’s unit IJM Properties Sdn Bhd to build PJ8, an office tower that was reported to have an estimated gross sales value of RM210 million.

Listed on the Main Market, Mega First’s shares dipped one sen or 0.27% to close at RM3.71 today, for a market capitalisation of RM410.76 million.