Friday 29 Mar 2024
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KUALA LUMPUR (Nov 5): Tenaga Nasional Bhd (TNB) and Malakoff Corp Bhd said a unit of theirs has received notices of assessment from the Inland Revenue Board (IRB) amounting to over half a billion ringgit, according to their filings with Bursa Malaysia on Friday (Nov 5). 

According to both TNB and Malakoff, Kapar Energy Ventures Sdn Bhd (KEV) on Nov 1, 2021 received notices of assessment for the years of assessment (YAs) 2011, 2012 and 2014, and notices of additional assessment for the YAs 2013, 2015, 2016, 2017 and 2018, all dated Oct 29, 2021 amounting in aggregate to RM595.95 million.

KEV is a 60% subsidiary of TNB Power Generation Sdn Bhd, the latter being a wholly-owned subsidiary of TNB, while it is also a 40%-owned associate of Malakoff. 

TNB said the IRB took the position that the redeemable unsecured loan stock (RULS) granted to KEV by TNB and Malakoff to finance the acquisition and operation of Stesen Janaelektrik Sultan Salahuddin Abdul Aziz, Kapar, should be treated as an equity transaction and thus, capital in nature. 

“Consequent to this, the interest expenses incurred by KEV in relation to the RULS are not allowed by the IRB as expenses deductible under Section 33(1)(a) of the Income Tax Act 1967.

Furthermore, the IRB had also disallowed KEV's revision of revenue for the YAs 2004 to 2009,” said TNB.

Based on the legal advice obtained from its tax solicitors, TNB said KEV is of the view that it has a good basis in law to contend that the assessments were incorrectly raised by the IRB.

Both TNB and Malakoff added that the board of KEV is currently deliberating on the next course of action, with the two companies to make further announcements on any material development in respect of the foregoing.

TNB shares closed 3 sen or 0.31% higher at RM9.61 on Friday, with almost 3.07 million shares traded. Its market capitalisation stood at RM54.97 billion.

Malakoff’s share price fell 1 sen or 1.23% to close at 80.5 sen on Friday, giving it a market capitalisation of RM3.93 billion.

Edited ByLam Jian Wyn
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