KUALA LUMPUR (May 3): UEM Edgenta Bhd has been slapped with a RM18.7 million penalty by the Director General of Inland Revenue Board (IRB) for the years of assessment 2015 to 2018.

Notices of additional assessment for the said period were raised "mainly pursuant to dispute by IRB 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", according to the company's filing with Bursa Malaysia today.

Based on UEM Edgenta tax solicitors' opinion, the company views that there are reasonable grounds to challenge the basis of assessment.

Thus, the company shall proceed to file an appeal against the said notices raised by IRB with the Special Commissioner of Income Tax.

"The company is taking further advice from its tax solicitors and tax agent in order to take all necessary actions to protect the interest of the company," said UEM Edgenta.

There will not be any imminent financial effect on UEM Edgenta pending outcome of the appeal.

"The company will make further announcements on any material development of the matter from time to time," UEM Edgenta added.

UEM Edgenta's shares dropped five sen or 2.7% to RM1.80 today, valuing it at RM1.5 billion. Over the past year, the counter has fallen 27.4% from RM2.48.