Cocoaland slapped with additional tax, penalty of RM5.9mil

Fruit gummies - Cocoaland Bhd's star products

KUALA LUMPUR: Cocoaland Holdings Bhd has become the latest listed group to be slapped with additional income tax and penalty by the Inland Revenue Board (IRB).

The candy and juice drink maker, which is a 27.2% owned associate of Fraser & Neave Holdings Bhd, said the IRB had informed its unit Cocoaland Industry Sdn Bhd (CISB) of its initial tax audit findings for the years of assessment 2010 to 2014, which showed CISB owed an additional income tax of RM4.06mil.

The IRB is also imposing a 45% penalty of RM1.83mil.

CISB was hit by the additional tax and penalty totalling RM5.89mil mainly due to the reinvestment allowance claimed on certain plant and machinery that was disallowed on the basis that the capital expenditure incurred did not qualify for the incentive.

Cocoaland said CISB had engaged tax consultants and would file an appeal.

Cocoaland recorded a group after-tax profit of RM43.8mil for the last financial year ended Dec 31, 2016, up 34% from the previous year, on revenue of RM272.64mil.