IRB slaps Damansara Holdings’ unit with additional RM29m tax bill

IRB slaps Damansara Holdings’ unit with additional RM29m tax bill
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KUALA LUMPUR (Sept 26): Damansara Holdings Bhd's (DBhd) wholly-owned subsidiary Damansara Realty (Johor) Sdn Bhd (DRJ) has been slapped with an additional income tax bill with penalty of RM29.06 million from the Inland Revenue Board (IRB). This is for years of assessment 2016 to 2019.

In a filing with Bursa Malaysia on Monday (Sept 26), DBhd said the additional assessment was imposed by IRB in relation to the alleged disposal of development rights for the Taman Damansara Aliff project in Johor Baru, Johor.

However, based on its tax agent and solicitors’ opinion, the group is of the view that there are reasonable grounds to challenge the basis of the additional assessment, as there was no disposal of the development rights as alleged by IRB.

“Hence, DRJ had on Sept 26 proceeded to file an application for leave to apply for, among others, an order for certiorari to quash Director General of Inland Revenue’s (DGIR) decision of the additional assessment, as well as an application for a stay of proceeding in respect of the DGIR’s decision at the Shah Alam High Court,” it said.

DBhd added that it and DRJ will also be filing an application to the Special Commissioner of Income Tax to appeal against the notices of assessment and notices of additional assessment with penalty, within the prescribed period of time.

“The company will make further announcement on any material development of the matter from time to time.”

DBhd shares closed down 12.5 sen or 19.84% at 50.5 sen on Monday, bringing it a market capitalisation of RM165.02 million.