PETALING JAYA: AEON Credit Service (M) Bhd and the director-general of the Inland Revenue Board have mutually reached an out of court settlement on the tax appeal lodged by the company.
The director-general agreed to revise the additional taxes payable by Aeon Credit to RM10.31mil from RM96.82mil, inclusive of penalties.
The group said in its filing with Bursa Malaysia that the director-general also agreed to withdraw legal proceedings against them at the Shah Alam High Court and likewise, Aeon Credit agreed to withdraw its appeal before the Court of Appeal.
The company said it will settle the payment of the revised additional taxes, which formed the full and final tax settlement sum for the tax appeals for the years of assessment of 2010 to 2016.
The settlement agreement was recorded before the Special Commissioners of Income Tax (SCIT) yesterday, which will be followed by the issuance of a deciding order by the SCIT.
“The settlement enables the company to have closure on a long outstanding matter and avoid being engaged in a prolonged litigation with uncertain outcome.
“The settlement will not materially affect the financial position of the company, and its financial performance for the year under review, ” Aeon Credit said.