IRB Allows DRB-HICOM’s Appeal Against Additional Tax From Unit's Sale

KUALA LUMPUR, March 21 (Bernama) -- The Inland Revenue Board of Malaysia (IRB) has allowed DRB-HICOM Bhd‘s appeal against the notice of additional assessment that the gain from the disposal of a subsidiary is not subject to tax under Section 4(a) of the Income Tax Act 1967.

In a filing with Bursa Malaysia today, DRB-HICOM said accordingly, the tax amounting to RM246.25 million is fully discharged through a notification received from IRB on March 20, 2025.

On Sept 2, 2024, DRB-HICOM said it would appeal and, if required, initiate legal proceedings to challenge the basis and validity of the assessment notice from the IRB amounting to RM246.25 million (including penalty) for the assessment year 2020.

The group said the notice received by its subsidiary on Aug 30, 2024, was raised pursuant to IRB’s decision to treat a gain from the disposal of a long-term investment held in a subsidiary as income subject to tax under Section 4(a) of the Income Tax Act 1967 for the year of assessment 2020.

-- BERNAMA