IRB accepts voluntary declaration by Seacera unit for RM22.18m overdue tax

TheEdge Thu, Jun 13, 2019 10:29am - 4 years View Original


KUALA LUMPUR: Seacera Group Bhd, which has nearly missed the deadline to submit its quarterly financial accounts, said the Inland Revenue Board (IRB) has accepted the voluntary declaration by its unit to settle an overdue tax for the years of assessment of 2009 and 2012 totalling RM22.18 million.

In a filing with the stock exchange yesterday, Seacera said its unit Duta Skyline Sdn Bhd yesterday received a letter dated May 31 from IRB to settle the amount before July 1.

It said its voluntary declaration letter dated May 13 was signed by Datuk Ismail Othman (one of the vendors and directors of Duta Nilai Holdings Sdn Bhd and Duta Skyline) without written approval from the board of directors of Duta Skyline and Seacera.

Seacera said the additional tax due amount of RM22.18 million occurred prior to Seacera’s acquisition of Duta Nilai Holdings on Nov 16, 2016. Duta Nilai Holdings wholly owns Duta Skyline.

“Accordingly, the board of directors of Seacera is [of] the opinion [that] the additional tax amount is personally payable in full by the vendors of Duta Nilai Holdings as the additional tax constitutes a clear breach of vendors warranties under Clause 9.2 and paragraph 6.1 and paragraph 6.2 of Schedule 7 of the sale and purchase agreement dated Nov 16, 2016,” Seacera said.

The group said it is seeking legal advice on the next course of action to be taken and that further announcement will be made accordingly.

On Tuesday, Seacera submitted its unaudited quarterly financial report — posting a net loss of RM102.15 million for the quarter ended March 31, 2019 — just in time to avoid the suspension of its shares yesterday.

Recall the stock exchange last Tuesday threatened to suspend the trading of the tile maker’s shares if the regulator was not furnished with the report by or before Tuesday.

Meanwhile, Seacera’s quarterly report shows its net loss of RM102.15 million for the fifth quarter ended March 31 (5QFY19) was due to impairments (RM66 million) and the recognition of liability (RM31 million) on a corporate guarantee for an associate company, SPAZ Sdn Bhd, as demanded by SME Bank, which it announced on May 30.

Due to a change of financial year end from Dec 31, 2018 to June 30, 2019, there were no comparative figures for 5QFY19 and the 15-month ended March 31, it said.

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