KUALA LUMPUR, May 3 — The Inland Revenue Board has slapped UEM Edgenta Bhd with an additional income tax with penalty of RM18.7 million for the years of assessment 2015 to 2018.

In a filing with Bursa Malaysia today, the company said it was served with the notices of additional assessment with penalty mainly following a dispute on the status of UEM Edgenta as a management services company, which would be taxed as an investment holding company under Section 60FA of the Income Tax Act 1967.

"Based on UEM Edgenta tax solicitors’ opinion, the company is of the view that there are reasonable grounds to challenge the basis of assessment.

"UEM Edgenta shall proceed to file an appeal against the 2021 notices raised by the Director General of Inland Revenue with the Special Commissioners of Income Tax,” it said.

The company said it would take further advice from its tax solicitors and tax agent in order to protect its interest.

"There will not be any imminent financial effects on UEM Edgenta pending the outcome of the appeal,” it added. — Bernama