Westports gets RM120m tax bill from IRB

KUALA LUMPUR (Oct 5): Westports Holdings Bhd said its subsidiary has been slapped with a RM120.58 million bill by the Inland Revenue Board (IRB) for additional tax liabilities, inclusive of penalties, for years of assessment from 2013 to 2018.

The port operator said the additional tax assessment is in relation to the annual lease payment made by wholly-owned subsidiary Westports Malaysia Sdn Bhd(WMSB) to the Port Klang Authority (PKA) totalling RM299.9 million for the six years.

It also involves the deferred revenue of RM7.97 million in 2018, Westports said in a filing with the local stock exchange today.

“The IRB has now assessed that the annual lease payment made by WMSB to the PKA as not allowable for deduction in WMSB’s tax computation,” Westports said.

The group however, said WMSB has obtained confirmation from its tax advisors and legal advice from tax solicitors to contend that IRB’s interpretation is fundamentally erroneous.

It noted that WMSB’s accounting policy and the treatment of the annual lease payments have been audited annually by among the largest professional accounting firms since 2013, with no qualification.

“WMSB will appeal and contest against the notice of additional assessment,” said Westports.

Westports’ share price closed five sen or 1.28% higher at RM3.95 today, valuing the group at RM13.47 billion.

Source: TheEdgeMarkets