Latest news with #IRB
BusinessToday
17 hours ago
- Business
- BusinessToday
CIMB Backs TNB Despite RM5.8 Billion Tax Overhang
CIMB Investment Bank Bhd (CIMB Securities) has maintained its BUY rating on Tenaga Nasional Bhd (TNB) with an unchanged target price of RM15.75, even as the utility giant faces a new tax challenge after receiving a Notice of Additional Assessment for 2022 amounting to RM840.1 million from the Inland Revenue Board (IRB). The research house said this latest assessment brings the total cumulative amount from notices issued for 2013–2021 to RM5.89 billion. It added that there remains a risk the IRB could issue further assessments for 2023 and 2024, which may push the total closer to RM8 billion based on capital expenditure trends. TNB is currently assessing its legal options in response to the notice, taking into account its pending application for Investment Allowance (IA) under Schedule 7B of the Income Tax Act 1967 submitted to the Ministry of Finance. CIMB Securities highlighted that this follows the Federal Court's recent decision to overturn earlier rulings in TNB's favour regarding a similar assessment for 2018, concluding that the correct tax schedule applicable is Schedule 7B rather than Schedule 7A. CIMB Securities noted that in the worst-case scenario where TNB pays the full amount, including possible future assessments, the impact on its discounted cash flow-based target price could be as high as RM1.30 to RM1.40 per share, or 8–9%. However, this impact would be smaller or even negligible if the group's IA claims are approved. Despite the tax uncertainty, the house maintained its positive stance on TNB, citing its reasonable valuation at 7.0 times forecast FY2026 enterprise value-to-EBITDA and dividend yields projected between 3.3% and 4.0% for FY2025 to FY2027. The brokerage expects the company's earnings to remain resilient, underpinned by regulated returns and stable operational cash flows. As of July 28, TNB shares traded at RM13.60. Related
The Star
a day ago
- Business
- The Star
TNB dividend payout trend intact despite tax risk
PETALING JAYA: Tenaga Nasional Bhd 's (TNB) total taxes could potentially rise to about RM8bil, should the Inland Revenue Board (IRB) decide to further issue tax assessment for 2023-2024, says CIMB Securities Research. The utility giant recently received a notice of additional assessment (NAA) from the IRB for 2022 amounting to RM840.1mil. This was on top of the cumulative amount from NAA for the years 2013 to 2021 of RM5.05bil (net of remission of penalties and RM1.76bil paid to IRB in December 2020 in relation to the years 2016 to 2017), bringing the total to-date to RM5.89bil. In a note to clients, CIMB Research said 'we believe there is a risk the IRB may also potentially issue a NAA for 2023-2024'. If TNB's financial year 2023 (FY23) to FY24 capital expenditure provides any indication, the research house thinks that the additional tax assessment for 2023 to 2024 could be around RM2bil, raising the total amount for 2013 to 2024 to nearly RM8bil. Meanwhile, TNB said it is currently evaluating its available legal options to address the latest NAA, taking into consideration that TNB has already submitted an application for Investment Allowance or IA under Schedule 7B of the Income Tax Act 1967 (including those for 2022) to the Minister of Finance or MoF. In a separate note, UOB Kay Hian (UOBKH) Research also maintained its 'buy' call on the TNB stock, with a target price of RM16.30 per share. It believes that the share price has largely priced in the income tax-related negative newsflow, as the stock is down 9% since the news first broke out. Commenting on the additional RM840mil tax notice from IRB, UOBKH Research expects TNB and IRB to land on a decision by end-August 2025. UOBKH Research forecasts that TNB dividends will remain intact as dividend payout is 30% to 60% of underlying net profit.
Time of India
a day ago
- Time of India
Task cut out for Ludh jail's new superintendent
Ludhiana: Ludhiana Central Jail, located on Tajpur Road, has a new superintendent in Kulwant Singh Sidhu. He had previously served in this capacity for a year during the outbreak of Covid-19. Tired of too many ads? go ad free now The challenges ahead for him include the alleged involvement of jail staff in providing prohibited items to inmates, the reported tossing of contraband from outside, and the involvement of some inmates in criminal activities outside the jail. Recently, Ludhiana police brought gangster Sukhwinder Singh Moni, lodged in Ludhiana jail, on a production warrant for his alleged involvement in a firing case in Jawahar Nagar. Earlier too, several inmates were found to be behind criminal activities outside the jail. The new superintendent will also have to keep a hawk's eye on the jail staff. On July 11, the security personnel of the jail nabbed an Indian Reserve Battalion (IRB) constable, Jagdeep Singh, for sneaking contraband. The jail officials recovered 30gm of tobacco and 14 sachets of tobacco from his possession. The accused was allegedly supplying contraband to the inmates in exchange for money. Constable Jagdeep Singh was deputed at the jail for the past 14 years. Prior to this, on March 24, Irfan, who was working on a project to install artificial intelligence-equipped cameras in the prison, was caught providing tobacco to an inmate, Shafeeq Khan. Both Irfan and Shafeeq were booked, and 250gm of tobacco was seized from Shafeeq's possession. The next challenge for the superintendent is the alleged tossing of mobiles and contraband from outside. Tired of too many ads? go ad free now Several houses are built near the boundary wall of the jail. According to jail officials, people throw mobiles, tobacco, and other prohibited items, after wrapping them properly, inside the jail from the rooftops of their houses. The jail authorities have claimed that the mobiles recovered from the jail inmates are mostly thrown inside from these houses. Superintendent Sidhu said, "I don't take these as big challenges. As I have already served as a superintendent at Ludhiana jail from April 2020 to April 2021, I know the issues here. To check the tossing of prohibited items into the jail from outside, AI cameras have already been installed and will be functional soon. Besides, regular patrolling and drone surveillance will also be ensured in the surroundings." Asked about the involvement of inmates in criminal activities and how they manage to contact their aides outside, Sidhu said, "What I have observed over time is that sometimes the inmates also use the landline phone facility provided to them to pass on their messages, albeit in code words. All these calls are recorded, which we do listen to as well. However, they do not speak clearly over these calls to avoid getting caught. " Sidhu further stated that his focus would also be on the counselling the inmates, especially those who come to jail for the first time, as the right guidance would lead them to a crime-free life.
Barnama
2 days ago
- Business
- Barnama
TNB Shares Slip At Mid-morning After RM840.1 Mln IRB Tax Notice
BUSINESS KUALA LUMPUR, July 28 (Bernama) -- Tenaga Nasional Bhd's (TNB) shares slip at mid-morning trading after receiving a notice seeking an additional RM840.1 million in assessment for 2022 from the Inland Revenue Board (IRB). At 10.51 am, the counter fell 18 sen to RM13.42 with a total of 2.91 million shares traded. In a note today, CIMB Securities Bhd said the issue was due to the cumulative amount from notices seeking additional assessment for the years 2013–2021 of RM5.05 billion, net of remission of penalties and RM1.76 billion paid to IRB in December 2020, for 2016-2017, bringing the total to RM5.89 billion to date. 'We believe there is a risk that the IRB may also potentially issue a notice of additional assessment for 2023–2024. 'If TNB's 2023-2024 financial year capital expenditure provides any indication, we think the additional tax assessment for 2023–2024 could be around RM2 billion, which raises the total amount for 2013–2024 to nearly RM8 billion,' it said. The investment bank also said in light of the Federal Court's decision regarding a similar notice for 2018, TNB is currently evaluating its available legal options to address the issue. 'This evaluation takes into consideration that TNB has already applied for investment allowance (IA) under Schedule 7B of the Income Tax Act 1967 (including those for 2022) to the Finance Minister,' it said. Therefore, CIMB Securities has maintained a 'Buy' call on TNB with a target price of RM15.75 per share. On July 2, the Federal Court's final ruling allowed the IRB's appeal, overturning the decision by the High Court and the Court of Appeal, which had previously ruled in favour of TNB's judicial review application to set aside the notice of additional assessment amounting to RM1.25 billion for 2018.
Malay Mail
2 days ago
- Business
- Malay Mail
TNB shares slip at mid-morning after RM840.1m IRB tax notice
KUALA LUMPUR, July 28 — Tenaga Nasional Bhd's (TNB) shares slip at mid-morning trading after receiving a notice seeking an additional RM840.1 million in assessment for 2022 from the Inland Revenue Board (IRB). At 10.51am, the counter fell 18 sen to RM13.42 with a total of 2.91 million shares traded. In a note today, CIMB Securities Bhd said the issue was due to the cumulative amount from notices seeking additional assessment for the years 2013–2021 of RM5.05 billion, net of remission of penalties and RM1.76 billion paid to IRB in December 2020, for 2016-2017, bringing the total to RM5.89 billion to date. 'We believe there is a risk that the IRB may also potentially issue a notice of additional assessment for 2023–2024. 'If TNB's 2023-2024 financial year capital expenditure provides any indication, we think the additional tax assessment for 2023–2024 could be around RM2 billion, which raises the total amount for 2013–2024 to nearly RM8 billion,' it said. The investment bank also said in light of the Federal Court's decision regarding a similar notice for 2018, TNB is currently evaluating its available legal options to address the issue. 'This evaluation takes into consideration that TNB has already applied for investment allowance (IA) under Schedule 7B of the Income Tax Act 1967 (including those for 2022) to the Finance Minister,' it said. Therefore, CIMB Securities has maintained a 'Buy' call on TNB with a target price of RM15.75 per share. On July 2, the Federal Court's final ruling allowed the IRB's appeal, overturning the decision by the High Court and the Court of Appeal, which had previously ruled in favour of TNB's judicial review application to set aside the notice of additional assessment amounting to RM1.25 billion for 2018. The Federal Court ruled that the applicable tax schedule for TNB should be 7B (IA), instead of Schedule 7A (reinvestment allowance). — Bernama
