This article first appeared in The Edge Financial Daily on June 21, 2019

KUALA LUMPUR: Genting Malaysia Bhd has decided to withdraw its judicial review application against the ministry of finance’s (MoF) decision to amend the tax incentive approval in December 2017.

The casino operator announced the decision in a filing with Bursa Malaysia yesterday, without elaborating on the rationale behind the move.

To recap, in late 2014, the MoF granted tax incentives for the group’s Genting Integrated Tourism Plan (GITP), which among others, entitled Genting Malaysia to claim for income tax exemption equivalent to 100% of qualifying capital expenditure incurred for a period of 10 years.

However, the ministry amended the tax incentive approval in December 2017. While the amendment did not remove the tax incentives granted previously, it effectively prolonged the utilisation period of the tax allowances “significantly”, according to Genting Malaysia. Therefore, Genting Malaysia submitted an appeal to the MoF, which was turned down in September last year.

In January this year, Genting Malaysia told Bursa that it was filing an application for a judicial review of the MoF’s decision to amend the tax incentive approval. The High Court granted a stay on the MoF’s decision, pending disposal of the judicial review application.