TNB granted leave for judicial review on RM291.6mil tax bill
In a filing with Bursa Malaysia, TNB said it was also granted an interim stay of all further proceedings, including the enforcement of the assessment notice, until the disposal of the substantive hearing.
The High Court scheduled a case management on Aug 5 for further directions.
Earlier this month, the Federal Court ruled in favour of the IRB concerning an additional tax assessment, also for the year 2018.
The court overturned earlier High Court and Court of Appeal decisions that had favoured TNB, reinstating a tax bill initially set at RM1.81bil, which was reduced to RM1.25bil after a penalty remission in December 2020.
The ruling clarified that TNB, as a utility company, should claim tax relief under Schedule 7B (Investment Allowance) of the Income Tax Act 1967, not Schedule 7A (Reinvestment Allowance) meant for manufacturers.
This decision could lead to a total tax liability of RM5.05bil for TNB for the years 2013 to 2018, with potential additional assessments for 2020 and 2021.
TNB is assessing the financial impact, which may affect its earnings and net assets for 2025, and plans to pursue Investment Allowance claims under Schedule 7B. The ruling sets a precedent for TNB's tax obligations but is not expected to impact its operations.
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