Malaysian Energy Group – TENAGA Nasional Bhd – has been issued a RM 4.000.000.000 tax bill by the Revenue Board of Malaysia

Malaysian Energy Group – TENAGA Nasional Bhd – has begun legal proceedings against the Inland Revenue Board of Malaysia.

In November 2019, the Inland Revenue Board issued a tax assessment  according to which taxes of RM3.98 bil (or USD 1 billion) is owed for years 2015-2017.

After reciving the assessment, TENAGA responded “Based on the legal advice obtained from our tax solicitors, TNB has a good basis to contend that there is no legal and factual basis for IRB to issue the said notices”  “Accordingly, TNB will be appealing against the said notices.

The High Court has now granted an interim stay of all further proceedings including the enforcement of the notices until the hearing of the leave application on April 2, 2020.

In a prior case back from 2015 TENAGA received notices for the years of assessment 2013 and 2014 amounting to RM2.07 bil. Back then, TANAGA responded in the same way and said it would be “appealing against the said notices and the appeal process has commenced.” This prior dispute was later settled when Tenaga opted for an appeal to the Special Commissioners of Income Tax (SCIT) to qualify for a “reinvestment allowance”.

 

 

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