KUALA LUMPUR (Dec 29): MMC Corp Bhd is the latest to be slapped by the Inland Revenue Board (IRB) with RM45.91 million in additional income tax with penalties for the years of assessment of 2011 to 2013.

In a filing with Bursa Malaysia today, MMC said it has received notices of assessment from the IRB pursuant to a tax audit for the years of assessment 2011 to 2013.

"The additional income tax was imposed by the IRB as the IRB has taken the view that interest expenses relating to certain investments do not qualify for tax deduction under Section 33 of the Income Tax Act, 1967," it added.

Upon consulting with its tax counsel, MMC said it is of the view that there are reasonable grounds to challenge the notices of assessment raised by the IRB.

"(We) intend to file notices of appeal to the special commissioners of income tax and to take all steps necessary to challenge the disputed notices of assessment.

"Nevertheless, MMC will be making full payment of the additional income tax on a without prejudice basis to the IRB," it said.

MMC said the additional income tax is not expected to have any material impact on the group's net assets or gearing for the financial year ending Dec 31, 2017.

"MMC will make further announcements if there are any material developments in respect of the foregoing," it added.

On Dec 13, the IRB slapped Aeon Credit Service (M) Bhd with a RM96.82 million bill for additional income taxes with penalties for the years of assessment of 2010 to 2016. S P Setia Bhd's unit was also slapped with a back tax bill of RM75.38 million last month.

In October, the IRB slapped Cocoaland Holdings Bhd with RM5.89 million in additional taxes and penalties. In September, EcoFirst Consolidated Bhd said it was sued by the IRB over some RM35.47 million in additional taxes and penalties the latter is claiming for.

In May, the IRB sought RM80.77 million in additional taxes and penalties from MK Land Holdings Bhd's wholly-owned subsidiary Saujana Triangle Sdn Bhd, while Magnum Bhd and its wholly-owned subsidiary Magnum Holdings Sdn Bhd were served with notices of assessment for additional taxes and penalties totalling RM476.5 million.

In that same month, Country Heights Holdings Bhd announced that its executive chairman and major shareholder Tan Sri Lee Kim Yew had his fixed deposits of some RM126 million placed in a foreign-owned bank seized by the IRB in relation to RM22.5 million worth of tax liabilities incurred by Country Heights' wholly-owned unit Country Heights Sdn Bhd. The tax liabilities were accrued from the years of assessment of 1997 and 1998.

In April this year, the IRB slapped Tenaga Nasional Bhd with an extra RM2.07 billion tax bill for the 2013-2014 tax years.

MMC shares closed up 9 sen or 4.59% at RM2.05 today, bringing a market capitalisation of RM6.24 billion.