MK Land: Unit has legal grounds to challenge IRB notices, penalties

PETALING JAYA: MK Land Holdings Bhd said its wholly owned subsidiary Saujana Triangle Sdn Bhd has all the legal grounds to disagree to the notices of assessment and penalties served to it by the Inland Revenue Board (IRB).
This is in relation to the Notices of Assessment for the Years of Assessment 2009-2011 and 2013, both dated May 4.
The notices stipulate that RM80.76 million is payable by Saujana Triangle to the IRB, which includes an additional income tax of RM55.70 million and a 45% penalty amounting to RM25.06 million.
MK Land’s board of directors said it had appealed to the Court of Appeal after its application for a judicial review was dismissed by the High Court on Aug 9.
The IRB served Saujana Triangle with the notices in view of the gains from the disposal of land in 2009, for which the tax authority was said to have disregarded the five-year time-barred period to raise the assessments in respect of the land disposal.
“IRB has disallowed certain development costs on the basis that these are only provisions and the amounts have yet to be paid. Thus, IRB does not treat them to be incurred for the purpose of Section 33 (1) of the Income Tax Act, 1967,” it added.