IRB slaps MMC Corp with RM45.91 million additional income tax, penalty

PETALING JAYA: The Inland Revenue Board (IRB) has slapped MMC Corp Bhd with an additional income tax and penalty totalling RM45.91 million.
The group said in a filing with Bursa Malaysia that the additional income tax for the years of assessment of between 2011 and 2013 were imposed on the grounds of interest expenses for certain investments were found to have not qualified for tax deduction under Section 33 of the Income Tax Act, 1967.
MMC Corp said upon consulting its tax counsel it has found reasonable grounds on its part to file a notice of appeal to dispute the IRB's move. Nevertheless, it will be making full payment of the additional income tax on a without prejudice basis to the IRB.
"MMC intends to file notices of appeal to the Special Commissioners of Income Tax and to take all steps necessary to challenge the disputed notices of assessment."
MMC stressed that it will not have any material impact on the group's net assets or gearing for the financial year ending December 31, 2017.
MMC Corp's shares rose 4.59% to close at RM2.05 with some 2.12 million shares done.