PUTRAJAYA, July 2 — The Federal Court today allowed the Inland Revenue Board of Malaysia’s (LHDN) appeal concerning the notice of additional tax assessment issued to Tenaga Nasional Berhad (TNB) for the year of assessment 2018.
TNB said the Federal Court had set aside the earlier decisions of the High Court and the Court of Appeal, which had granted its judicial review application to quash the notice of additional assessment dated July 13, 2020.
The notice of additional assessment dated July 13, 2020, issued by LHDN to the company for the year of assessment 2018 initially amounted to RM1,812,506,384.64.
“However, following a penalty remission granted by IRB through a consent order dated December 29, 2020, the net amount was reduced to RM1,250,004,403.20,” it said in a statement filed with Bursa Malaysia today.
TNB added that this was to be read with its previous announcements made between July 2020 and June 2025. As such, it is assessing the full impact of today’s decision.
TNB noted that the Federal Court held that, as a utility company, the applicable Schedule is 7B of the Income Tax Act 1967, namely the Investment Allowance, instead of Schedule 7A, Reinvestment Allowance.
“Accordingly, in light of the Federal Court’s decision, TNB will be pursuing a claim for the Investment Allowance under Schedule 7B.
“This decision has a potential negative financial impact on the earnings and net assets of the company and Group for the financial year ending December 31, 2025.
“However, the decision is not expected to have any operational impact on the company and group,” it said.
— Bernama
