This article first appeared in The Edge Financial Daily on February 12, 2019

KUALA LUMPUR: UOA Development Bhd said two of its wholly-owned units received notices of additional assessment for additional income tax and penalties totalling RM39.62 million. The notices were served for year 2013 assessment by the Inland Revenue Board (IRB), the group said in a filing with Bursa Malaysia.

Windsor Triumph Sdn Bhd was charged with an additional assessment of RM8.99 million and a penalty of RM4.94 million for an adjustment by the IRB on the market values of properties that the subsidiary had withdrawn as stock-in-trade to hold as an investment property.

Sunny Uptown Sdn Bhd was charged with an additional assessment of RM16.57 million and a penalty of RM9.11 million for an adjustment by the IRB of the selling price of properties that the subsidiary had assigned to another wholly-owned unit of UOA Development.

The group said its subsidiaries have appealed to dispute the notices of additional assessment. “Upon consulting the company’s tax solicitors, we viewed there are strong grounds to challenge the basis and validity of the disputed notices of additional assessment raised by the IRB and the penalty imposed,” UOA Development said.

It also said both subsidiaries had relied on valuations by an independent and experienced registered valuer. The IRB adjusted these valuations by substituting them with valuations subsequently conducted by the Valuation and Property Services Department, it said.

UOA Development shares closed unchanged at RM2.37 yesterday, with a market value of RM4.37 billion.