IRB slaps Cocoaland with RM5.89 million additional income tax, penalty

PETALING JAYA: The Inland Revenue Board (IRB) has slapped Cocoaland Holdings Bhd for additional income tax and penalty totalling RM5.89 million.
Cocoaland told Bursa Malaysia that its wholly owned subsidiary Cocoaland Industry Sdn Bhd (CISB) had been served with a letter from IRB dated Oct 19 pertaining to the initial tax audit findings for the years of assessment 2010 to 2014 showing an additional income tax of RM4.06 million and 45% penalty of RM1.83 million.
The group said it is mainly due to the reinvestment allowance claimed on certain plant and machinery that was disallowed on the basis that the capital expenditure incurred did not qualify and meet the requirements stated in Paragraph 8 of Schedule 7A to the Income Tax Act 1967.
"CISB has engaged with tax consultants on the basis of the tax audit findings raised by the IRB and will appeal accordingly.
"Cocoaland will make further announcements on status updates on the above said matter," it noted.