KUALA LUMPUR: The Inland Revenue Board (IRB) has served Magnum Bhd and its wholly-owned subsidiary Magnum Holdings Sdn Bhd (MHSB) notices of tax assessment and penalties totaling RM476.56 million.
In a statement to Bursa Malaysia, Magnum said its portion of RM22.71 million covered the 2008, and 2011 to 2015 years of assessment, while MHSB’s portion of RM453.75 million is related to taxes from 2008 to 2013.
“Both Magnum and MHSB had appointed solicitors and are initiating proceedings to challenge the validity and legality of the notices of assessment,” Magnum said.
The company said the notices were raised after IRB disallowed MHSB’s deduction of interest expenses and loan stock interest expenses incurred during the said years of assessment for the Selective Capital Repayment Exercise and Privatisation of Magnum Corporation Sdn Bhd in 2008, then known as Magnum Corporation Bhd.
“Further, the notices of assessment for the years of assessment 2008, 2009, 2010 and 2011 were issued out of the prescribed time frame under law,” it added.
In the case of Magnum, the notices arose after its deduction of interest expenses for investment were disallowed.
“Upon consulting its solicitors, the Board is of the view that there are reasonable grounds to challenge the validity of the notices of assessment raised by the DGIR (Director General of Inland Revenue) and the penalty imposed.
“There will not be any imminent financial effects on the Group as the Group is seeking to secure a stand over of payment pending the resolution of this matter,” it added.