SP Setia's shares fall 1.43% on additional income tax bill

PETALING JAYA: SP Setia Bhd’s share price fell 1.43% this morning after the group was slapped with an additional income tax and penalty totalling RM75.38 million by the Inland Revenue Board (IRB).
At 10.58am, its share price fell 1.43% or 5 sen to RM3.44 with a total of 1.07 million shares traded. The stock fell 5 sen or 1.4% to close at RM3.49 last Friday, with some 9.94 million shares changing hands.
The property developer’s wholly owned subsidiary Bandar Setia Alam Sdn Bhd (BSASB) was served by IRB with notices of additional assessment for the years of 2008, 2009, 2010, 2011 and 2013 dated Nov 13, 2017 for an additional income tax of RM51.99 million and a penalty of RM23.39 million totalling RM75.38 million.
According to the group, IRB has taken the view that the gains from the disposal of land and properties held under investment properties under BSASB are chargeable to income tax under the Income Tax Act 1967 instead of the Real Property Gains Tax Act 1976 (RPGTA).
BSASB’s tax solicitors believe that there are reasonable grounds to challenge the basis and validity of the disputed notices of additional assessment raised by the IRB and the penalty imposed. BSASB will challenge the said disputed notices of additional assessment.