Friday 29 Mar 2024
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KUALA LUMPUR (April 12): A unit of Iskandar Waterfront City Bhd (IWCity) is being sued by the Inland Revenue Board (IRB) for RM32.23 million in additional taxes and penalties.

In a bourse filing today, IWCity said its wholly-owned subsidiary Tebrau Bay Constructions Sdn Bhd (TBCSB) had been served with a legal claim dated 15 March 2018 on 12 April for the amount, as well as interest and costs.

IWCity explained IRB’s legal claim arose from the additional income tax assessment and penalties levied by the IRB amounting to RM36.98 million for assessment years 2010, 2012 and 2014.

“TBCSB did not receive the notices of assessment dated Aug 16, 2017, but was only notified of the said notices via email on Jan 24.”

It said TBCSB disagrees with the assessment and has appealed to the IRB seeking an extension of time. It has not paid the additional assessment pending the appeal outcome.

“Upon consulting its solicitors, TBCSB 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.

“The claims, however, are not expected to have any material operational impact on the IWCity group,” it added.

IWCity is currently seeking the advice of its tax consultants and solicitors.

It closed 5.5 sen or 6.14% lower at 84 sen for a market capitalisation of RM702.57 million.

Over the past 12 months, the counter has fallen 72.28%.

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