The High Court has allowed an interim stay on the enforcement of the IRB notices on Tenaga Nasional.
KUALA LUMPUR: In an unprecedented move, a large government-linked company -- Tenaga Nasional Bhd (TNB) -- is taking the Inland Revenue Board to court over the RM2.07bil tax bill slapped on it last month.
The national utility told Bursa Malaysia on Monday that it had received the High Court’s permission to start judicial review proceedings to set aside the notices of additional assessment following the reversal of IRB’s decision on giving TNB a reinvestment allowance.
The High Court also allowed an interim stay of all further proceedings, including the enforcement of the notices, until an inter-party hearing for the stay application was held, TNB said.
TNB had on Nov 23 received the IRB notices for the years of assessment 2013 and 2014 for the sum of RM985.574mil and RM1.083mil respectively.
Earlier on Monday, TNB chief financial officer Fazlur Rahman Zainuddin told a press conference after the company’s AGM that TNB was unable to determine yet on how a disputed RM2.07bil tax bill would affect the company’s profit and loss statement.
“This is subject to the outcome of the appeal and we can’t speculate (on) the position,” he said. “We’re appealing and can’t say anything more.”
However, Fazlur said that the matter would not affect TNB’s cashflow.
“Whatever cash we have in our business is actually there. Any additional assessment of tax et cetera, will be an outcome of the appeal. So at this point of time, whatever cash we have, we’ll have that,” he said.
As at Aug 31, TNB has a cashpile of RM2.23bil.
TNB shares lost 10 sen to close at RM13.04 on Monday, with 13.57 million shares traded.
The national utility told Bursa Malaysia on Monday that it had received the High Court’s permission to start judicial review proceedings to set aside the notices of additional assessment following the reversal of IRB’s decision on giving TNB a reinvestment allowance.
The High Court also allowed an interim stay of all further proceedings, including the enforcement of the notices, until an inter-party hearing for the stay application was held, TNB said.
TNB had on Nov 23 received the IRB notices for the years of assessment 2013 and 2014 for the sum of RM985.574mil and RM1.083mil respectively.
Earlier on Monday, TNB chief financial officer Fazlur Rahman Zainuddin told a press conference after the company’s AGM that TNB was unable to determine yet on how a disputed RM2.07bil tax bill would affect the company’s profit and loss statement.
“This is subject to the outcome of the appeal and we can’t speculate (on) the position,” he said. “We’re appealing and can’t say anything more.”
However, Fazlur said that the matter would not affect TNB’s cashflow.
“Whatever cash we have in our business is actually there. Any additional assessment of tax et cetera, will be an outcome of the appeal. So at this point of time, whatever cash we have, we’ll have that,” he said.
As at Aug 31, TNB has a cashpile of RM2.23bil.
TNB shares lost 10 sen to close at RM13.04 on Monday, with 13.57 million shares traded.
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