Magnum unit gets RM144mil tax notice from IRB

  • Corporate News
  • Saturday, 07 Dec 2019

PETALING JAYA: Multi-Purpose International Ltd (MPIL), a wholly-owned Labuan company of Magnum Bhd, has received notice from the Inland Revenue Board for past taxes totalling RM144mil.

This is for the assessment years of 2014,2015,2017 and 2018 amounting to RM40.3mil, RM40.4mil, RM38.7mil.7 and RM24.5mil, respectively.

On Dec 2,2019, MPIL received via e-mail the notice of assessment dated Nov 29,2019 for the year of assessment 2016 amounting to RM38.7mil.

The IRB, however, now claims that MPIL should be taxed under the Income Tax Act 1967 instead of the Labuan Business Activity Tax Act 1990.

Since its establishment, MPIL’s income including its interest income had been duly assessed under the Labuan Business Activity Tax Act 1990, a position which the IRB had never questioned in the past.

The board is challenging the validity of the said notices and the penalty imposed.

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Magnum , IRB


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