KUALA LUMPUR: The Inland Revenue Board (IRB) has slapped MMC Corp Bhd with RM45.91 million in penalties for the years of income tax assessment from 2011 to 2013. In a filing with Bursa Malaysia today, MMC said it has received notices of assessment from the IRB pursuant to a tax audit for the years of assessment 2011 to 2013. “The additional income tax was imposed by the IRB. The regulator said interest expenses relating to certain investments do not qualify for tax deduction under Section 33 of the Income Tax Act, 1967,” it added.
Upon consulting with its tax counsel, MMC said it has reasonable grounds to challenge the notices of assessment raised by the IRB.
“We intend to file notices of appeal to the special commissioners of income tax and to take all steps necessary to challenge the disputed notices of assessment. “Nevertheless, MMC will be making full payment of the additional income tax, on a without prejudice basis, to the IRB,” it said. MMC said the additional income tax is not expected to have any material impact on the group’s net assets or gearing for the financial year ending December 31, 2017.
