KUALA LUMPUR (March 14): MK Land Holdings Bhd said the RM80.77 million in income tax and penalties, claimed from its unit Saujana Triangle Sdn Bhd (STSB) by the Inland Revenue Department (IRB), has become due after the Court of Appeal upheld the High Court's decision.
The High Court had disallowed STSB's application for leave and stay to commence judicial review, which was made in respect of the IRB's notices of assessment.
In a bourse filing, MK Land said the decision by the courts was based on the availability of an alternative remedy via an appeal to the Special Commissioners of Income Tax, which was lodged by STSB on June 1, 2017.
"The amount of income tax and penalties totalling RM80.77 million allegedly owing by STSB now becomes due.
"STSB's solicitors and tax consultants had advised that there are reasonable grounds to challenge the validity of the said notices of assessment and additional assessment raised by the Director General of Inland Revenue and the penalties imposed via its appeal to the Special Commissioners of Income Tax," said MK Land.
The group said it will make further announcements on the matter if there is any material update.
To recap, the additional income tax by the IRB was for the years of assessment of 2009, 2010, 2011 and 2013, partly due to the gains from disposal of land in 2009, which should be treated as revenue instead of capital.
MK Land's share price fell 0.5 sen or 2.5% to 19.5 sen, giving a market capitalisation of RM234.9 million.