Inland Revenue Board accepts voluntary declaration by Seacera unit for RM22.18m overdue tax

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KUALA LUMPUR (June 12): Seacera Group Bhd says the Inland Revenue Board (LHDN) has accepted the voluntary declaration by its unit, to settle an overdue tax for the years of assessment of 2009 and 2012 totalling RM22.18 million.

In a filing with the stock exchange, Seacera said its unit Duta Skyline Sdn Bhd had today received a letter dated May 31 from LHDN to settle the amount before July 1.

It said the voluntary declaration letter dated May 13, 2019 was signed by Datuk Ismail Othman (one of the vendors and directors of Duta Nilai Holdings Sdn Bhd and Duta Skyline) without written approvals from the board of directors of Duta Skyline and Seacera.

Seacera said the additional tax due amount of RM22.18 million occurred prior to the Seacera's acquisition of Duta Nilai Holdings on Nov 16, 2016. Duta Nilai Holdings wholly owns Duta Skyline.

"Accordingly, the board of directors of Seacera is [of] the opinion the additional tax amount is personally payable in full by the vendors of Duta Nilai Holdings as the additional tax constitutes a clear breach of the vendors warranties under Clause 9.2 and paragraph 6.1 and paragraph 6.2 of Schedule 7 of the sale and purchase agreement dated Nov 16, 2016," Seacera said.

The group said it is seeking legal advice on the next course of actions to be taken and further announcement will be made accordingly.

At the midday break, Seacera rose 4.65% or 1 sen to 22.5 sen with 3.74 million shares traded.