Tenaga Nasional Bhd (TNB) and Malakoff Corp Bhd say their joint venture company has received notices of assessment from the Inland Revenue Board (IRB) amounting to nearly RM600 million.
According to their filings with Bursa Malaysia on Friday, Kapar Energy Ventures Sdn Bhd (KEV) had on Nov 1 received notices of assessment for the years of assessment (YAs) 2011, 2012 and 2014, and notices of additional assessment for the YAs 2013, 2015, 2016, 2017 and 2018, all dated Oct 29 this year amounting in aggregate of RM595.95 million.
KEV is a 60 per cent subsidiary of TNB’s wholly-owned TNB Power Generation Sdn Bhd, and a 40 per cent-owned associate of Malakoff.
TNB said the IRB had decided that the redeemable unsecured loan stock (RULS) granted by the company, should be treated as an equity transaction and thus, capital in nature.
The RULS was granted to finance the acquisition and operation of KEV’s Stesen Janaelektrik Sultan Salahuddin Abdul Aziz in Kapar, Perak.
The IRB had also disallowed KEV’s revision of revenue for the YAs 2004 to 2009, it added.
“Based on the legal advice obtained from its tax solicitors, KEV is of the view that it has a good basis in law to contend that the said assessments were incorrectly raised by the IRB,” TNB said.
It added that the board of KEV was deliberating on the next course of action. – NST ONLINE
