IRB slaps Magnum, unit with RM476.5m assessments, penalty

PETALING JAYA: The Inland Revenue Board (IRB) has slapped Magnum Bhd and its wholly owned subsidiary Magnum Holdings Sdn Bhd (MHSB) with notices of assessment for penalty totalling RM476.5 million.
In a filing with Bursa Malaysia last Friday, Magnum said the notices of assessment were in relation to the disallowance of MHSB’s deduction of interest expenses and loan stock interest expenses incurred during the said years of assessment for the Court sanctioned Selective Capital Repayment Exercise and Privatisation of Magnum Corp Sdn Bhd in 2008, then known as Magnum Corp Bhd.
“Further, the notices of assessment for the years of assessment 2008, 2009, 2010 and 2011 were issued out of the prescribed time frame under law,” it noted.
The group added that the notices of assessment were also raised pursuant to the disallowance of Magnum’s deduction of interest expenses for investments.
Magnum said the group and MHSB had appointed solicitors and are initiating proceedings to challenge the validity and legality of the notices of assessment.
Upon consulting its solicitors, the group said the board is of view that there are reasonable grounds to challenge the validity of the notices of assessment raised by the Inland Revenue director-general and the penalty imposed.