This article first appeared in The Edge Financial Daily on March 29, 2018

KUALA LUMPUR: Property developer S P Setia Bhd has been hit with a tax bill for the second time in less than four months by the Inland Revenue Board (IRB), albeit at a smaller one of RM32.54 million for the years of assessment of 2009 to 2015.

In November last year, the IRB slapped S P Setia with additional income taxes and penalties amounting to RM75.38 million for the years of assessment of 2008 to 2013.

In a filing with Bursa Malaysia yesterday, S P Setia said it was served notices of additional assessment by the IRB on Tuesday for an additional income tax of RM22.44 million and a penalty of RM10.1 million.

“The notices were raised by the IRB pursuant to the disallowance of the interest expenses deducted by S P Setia as a deductible expense in the years of assessment of 2011 to 2015, as well as the disallowance of the common expenses deducted by S P Setia as a deductible expense in the years of assessment of 2009 to 2015,” it added.

Upon consulting with its tax solicitors, S P Setia said it is of the view that there are reasonable grounds to challenge the basis and validity of the disputed notices of additional assessment raised by the IRB and the penalty imposed.

“S P Setia will challenge the said disputed notices of additional assessment and take all necessary actions to protect the interest of S P Setia,” it said.

The group noted that any further material development on the matter will be announced in due course.

S P Setia shares closed down two sen or 0.66% at RM3.03 yesterday, bringing it a market capitalisation of RM11.37 billion.