EDGENTA

0.950

-0.015 (-1.6%)

OTHERS UEM Edgenta Berhad ("UEM Edgenta" or the "Company") - Update on the Notices of Additional Assessment raised by the Director General of Inland Revenue ("DGIR") received by UEM Edgenta and Edgenta PROPEL Berhad

UEM EDGENTA BERHAD

Type Announcement
Subject OTHERS
Description
UEM Edgenta Berhad ("UEM Edgenta" or the "Company") - Update on the Notices of Additional Assessment raised by the Director General of Inland Revenue ("DGIR") received by UEM Edgenta and Edgenta PROPEL Berhad

Reference is made to the Company’s announcements dated 3 May 2021, 30 June 2021 and 6 July 2021 in relation to the notices of assessment raised by the DGIR to UEM Edgenta and Edgenta PROPEL Berhad (“EPB”), its wholly-owned subsidiary.

 

UEM Edgenta wishes to announce that on 15 December 2022, the Company and EPB had recorded their respective Settlement Agreements with the DGIR before the Special Commissioner of Income Tax (“SCIT”), which is to be followed by the issuance of a Deciding Order by the SCIT.

 

The Settlement Agreement between UEM Edgenta and DGIR was in relation to the assessments for the year of assessment (“YA”) 2015 to YA2018 amounting to RM18.7 million imposed on the Company (“2021 Notices”).

 

The 2021 Notices were mainly pursuant to the dispute on the status of UEM Edgenta as a Management Services Company and shall be taxed as an Investment Holding Company under Section 60FA of the Income Tax Act, 1967.

 

The salient terms of the Settlement Agreement between UEM Edgenta and DGIR are as follows:

 

1) UEM Edgenta and DGIR reached an agreement of the Company’s treatment of its taxable income for YA2015 to YA2018. Consequently, DGIR agreed to:
(a) Revise the additional taxes payable and penalty for YA2015 to YA2018 from RM18.7 million to RM6.9 million.
(b) Allow the losses surrendered by the Company to EPB for YA2016 to YA2018 for deduction by EPB.

 

2) The Company shall withdraw its appeal to SCIT in relation to 2021 Notices.

 

3) The DGIR shall revise and/or discharge the assessments for YA2015 to YA2018.

 

The Settlement Agreement between EPB and DGIR was in relation to the assessments for YA2016 to YA2018 amounting to RM9.39 million imposed on EPB (“2021 EPB Notices”). The 2021 EPB Notices were consequent to DGIR’s view that EPB ought not to have deducted the adjusted losses surrendered to it by UEM Edgenta, flowing from DGIR’s position that UEM Edgenta is not a Management Services Company.

 

As the losses surrendered by UEM Edgenta are now allowed for deduction by EPB, there is no additional tax charges imposed on EPB for YA2016 to YA2018.

 

Other salient terms of the agreement between EPB and DGIR are as follows:

 

1) The DGIR shall discharge the notices of additional assessment for YA2016 to YA2018.

 

2) EPB shall withdraw its appeal to SCIT in relation to 2021 EPB Notices.

 

Other than additional tax expense and penalty of RM6.9 million which has been provided for in the financial year ending 31 December 2022, the settlement will not have further material impact on the Company’s financial position and financial performance for the financial year ending 31 December 2022.

 

This announcement is dated 15 December 2022.






Announcement Info

Company Name UEM EDGENTA BERHAD
Stock Name EDGENTA
Date Announced 15 Dec 2022
Category General Announcement for PLC
Reference Number GA1-14122022-00008