KUALA LUMPUR: The Royal Malaysian Customs Department has instructed Karyon Industries Bhd’s wholly-owned subsidiary Allbright Industries (M) Sdn Bhd (AISB) to pay outstanding sales tax of RM1.06 million and a RM531,732.49 fine.
Karyon, which manufactures oleochemical products, told Bursa Malaysia today that the outstanding tax and fine was due to “different classification of product tariff code”.
“Notwithstanding the above, AISB will make an appeal to the relevant authority in respect of the letter (from the Royal Malaysian Customs Department). The payment and penalty are not expected to have any material operational impact on KIB (Karyon) and its subsidiaries.
“In the event that the outcome from the appeal is unfavourable, the expected loss to the group would be up to RM1,595,197.47 (approximately RM1.6 billion),” Karyon said.
At 12:30pm, Karyon shares settled unchanged at 17.5 sen for a market capitalisation of RM83.2 million. The stock saw 162,000 shares traded.
