This article first appeared in The Edge Financial Daily on January 25, 2019

KUALA LUMPUR: The High Court here has granted Genting Malaysia Bhd leave to commence judicial review proceedings against the ministry of finance’s (MoF) decision to amend in 2017 a tax incentive approval it gave in 2014.

“Today (yesterday), the Kuala Lumpur High Court granted Genting Malaysia’s application for leave to commence judicial review of the MoF decision and a stay of the MoF decision pending disposal of the judicial review application before the High Court,” it said in a filing with Bursa Malaysia yesterday.

While the amendment does not remove the tax incentives previously granted, it has effectively prolonged the utilisation period of the tax allowances granted to the Genting Integrated Tourism Plan (GITP) by MoF in December 2014 “significantly”, said Genting Malaysia. MoF granted the tax incentives in December 2014 for the GITP, which among others, entitled Genting Malaysia to claim for income tax exemption equivalent to 100% of qualifying capital expenditure incurred, for 10 years. However, the ministry decided to amend that approval in December 2017. Genting Malaysia had submitted an appeal to the MoF, but the appeal was turned down last September. Genting Malaysia said it will make further announcements once there is a material development in relation to the matter.