KUALA LUMPUR (June 24): The Finance Ministry (MoF) has withdrawn a RM531,732 fine imposed on Karyon Industries Bhd's wholly-owned subsidiary, Allbright Industries (M) Sdn Bhd, provided Allbright settles its outstanding sales tax of RM1.06 million by Dec 31.

In a filing, Karyon — which manufactures oleochemical products — said Allbright has received a letter from MoF, informing the company it has rescinded the sales tax penalty, subject to Allbright making the full sales tax payment by Dec 31.

MoF also said there will be no refund for the penalty or compound that has been partially or fully paid.

To recap, the Royal Malaysian Customs Department had instructed Karyon to pay an outstanding sales tax of RM1.06 million and a RM531,732.49 fine on April 14.

Karyon had said the outstanding tax and fine was due to "different classification of product tariff code", and that Allbright would be appealing against the penalty.

The group had said an unfavourable outcome of the appeal would result in an expected loss of up to RM1.6 million.  

Karyon shares closed unchanged at 16.5 sen today, for a market capitalisation of RM78.49 million.