Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 21): S P Setia Bhd has reached a settlement with the Inland Revenue Board of Malaysia to pay RM2.61 million in additional taxes imposed on its wholly-owned subsidiary Bandar Setia Alam Sdn Bhd, instead of the RM75.4 million initially assessed.

In a filing with Bursa Malaysia today, S P Setia said it has received a consent order recorded before the High Court of Shah Alam today for the amount of the tax settlement. "With the above, the tax dispute between Bandar Setia Alam and the MIRB has been settled amicably,"  

A year ago, the company revealed the IRB had demanded RM75.38 million from Bandar Setia Alam in additional taxes relating to five years of assessments and penalties, but maintained it had grounds to contest the notice.

S P Setia said that it was served the notice as the IRB had taken the view that the gains from the disposal of land and properties held under investment properties under Bandar Setia Alam are chargeable under the Income Tax Act 1967 instead of the Real Property Gains Tax Act 1976.

S P Setia slipped 2 sen or 0.94% to close at RM2.12 today for a market capitalisation of RM8.389 billion

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