The Inland Revenue Board (IRB) has issued notices of assessment for additional taxes and penalties totalling RM22.8m to Idaman Harmoni Sdn Bhd (IHSB), a subsidiary of Mega First Corp Bhd.

The notices of assessment were in respect of income tax for YA 2009 in relation to a joint venture between IHSB as the landowner and IJM Corp Bhd’s unit, IJM Properties Sdn Bhd, as property developer for the construction of an office and residential property in Petaling Jaya (PJ8) as per an agreement dated 23 April 2004.

The company said the IRB had taken the view that there was a deemed disposal of the PJ8 property by IHSB which was subject to income tax. However, IHSB has taken the view that it is a capital transaction and therefore, is only subject to real property gains tax in year 2004.

IHSB has taken the view that the assessments are statute barred and erroneous in law, and will be appealing against the assessments.

Source: The Star Online, 5 October 2016