Latest news with #RM1.25bil
The Star
5 days ago
- Business
- The Star
TNB receives additional RM840.13mil tax bill for YA2022
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has received a notice of additional assessment from the Inland Revenue Board (IRB) for the year of assessment (YA) 2022 amounting to RM840.13mil, it said in stock exchange filing today. The energy utility said it received the notice on July 24, 2025, and - given the Federal Court's decision pertaining to a similar notice of additional assessment it received for YA 2018 - it is currently evaluating its available legal options. "This evaluation takes into consideration that TNB has already submitted an application for Investment Allowance under Schedule 7B of the Income Tax Act 1967 (including those for YA 2022) to the Minister of Finance," it said. Earlier this month, the Federal Court ruled in favour of the IRB concerning an additional tax assessment for the financial year ended December 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. On July 22, 2025, the High Court granted leave to TNB, through its subsidiary TNB Western Energy Bhd, to commence judicial review against the Inland Revenue Board (IRB) in relation to a tax assessment totalling RM291.6mil for the financial year ended December 2018. TNB said in a stock exchange filing 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.
The Star
22-07-2025
- Business
- The Star
TNB gets leave for judicial review
PETALING JAYA: The High Court granted leave to Tenaga Nasional Bhd (TNB), through its subsidiary TNB Western Energy Bhd, to commence judicial review against the Inland Revenue Board (IRB) in relation to a tax assessment totalling RM291.6mil for the financial year ended December 2018. In a filing with Bursa Malaysia yesterday, 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. Earlier this month, the Federal Court ruled in favour of the IRB concerning an additional tax assessment, also for 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 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. Although the ruling has set a precedent for TNB's tax obligations, it is not expected to impact its operations.
The Star
22-07-2025
- Business
- The Star
TNB granted leave for judicial review on RM291.6mil tax bill
PETALING JAYA: The High Court granted leave to Tenaga Nasional Bhd (TNB), through its subsidiary TNB Western Energy Bhd, to commence judicial review against the Inland Revenue Board (IRB) in relation to a tax assessment totalling RM291.6mil for the financial year ended December 2018. 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.
The Star
04-07-2025
- Politics
- The Star
Sept 10 set for decision on Rosmah's bid to recuse judge in solar hybrid case
PUTRAJAYA: The Court of Appeal has fixed Sept 10 to deliver its decision on Datin Seri Rosmah Mansor's appeal to recuse a High Court judge who presided over her corruption trial involving the RM1.25bil solar hybrid project in Sarawak. Court of Appeal deputy registrar Muhammad Noor Firdaus Rosli set the date during case management on Friday (July 4). On June 25, a three-member bench comprising Justices Datuk Ahmad Zaidi Ibrahim, Datuk Azman Abdullah and Datuk Noorin Badaruddin reserved judgment after hearing submissions from both the prosecution and defence. ALSO READ: Leaked draft judgment in Rosmah's solar hybrid case suggests bias, appeals court told Rosmah's lawyer, Datuk Akberdin Abdul Kader confirmed the date when contacted. The wife of former prime minister Datuk Seri Najib Razak is appealing against the decision by then High Court judge Justice Mohamed Zaini Mazlan, who has since been elevated to the Court of Appeal, dismissing her application for his recusal from presiding over her case. Rosmah filed the recusal application just before Judge Mohamed Zaini was slated to deliver his decision on Sept 1, 2022. ALSO READ: Rosmah's solar hybrid appeal fixed for hearing in October The application was based on allegations that a draft judgment in her case, purportedly prepared by a third party, had been leaked before its official delivery. On the same day, Justice Zaini found Rosmah, 73, guilty of three corruption charges linked to the hybrid solar project, and sentenced her to 10 years in prison and a RM970mil fine, in default 30 years in prison. However, she was granted a stay of execution on both the custodial sentence and the fine, pending the disposal of her appeal before the Court of Appeal. Rosmah was charged with one count of soliciting RM187.5mil and two counts of receiving RM6.5mil in bribes from former Jepak Holdings Sdn Bhd managing director Saidi Abang Samsudin. – Bernama
The Star
04-07-2025
- Business
- The Star
TNB dip seen as buying chance on strong long-term outlook
KUALA LUMPUR: Any short-term share price weakness in Tenaga Nasional Bhd (TNB) is seen as a buying opportunity for long-term investors, according to Hong Leong Investment Bank (HLIB) Research. The utility giant dropped 58 sen, or 3.97%, to RM14.02 at 10.26 am, though it has gained 0.43% over the past month. Despite the dip, HLIB Research views this weakness as an opportunity to capitalise on the company's prospects. The Federal Court today allowed the Inland Revenue Board's (IRB) appeal to reinstate an additional tax assessment of RM1.25bil against Tenaga Nasional Bhd (TNB) for the 2018 assessment year, following a penalty remission from the original RM1.8bil notice. 'This decision has a potential negative financial impact on the earnings and net assets of the company and group for the financial year ending Dec 31, 2025. However, the decision is not expected to have any operational impact on the company and group,' TNB said in a filing with Bursa Malaysia. Despite this, HLIB Research remains unconcerned about the potential one-off tax provision. 'We remain confident that TNB will reach a constructive resolution with all relevant stakeholders (particularly IRB) to minimise impact on its balance sheet and cash flow while asserting its entitlement to Investment Tax Allowance (ITA). 'Subsequently, TNB will proceed with the formal ITA application process to determine the final eligible amount, which will be resolved in due course, resulting neutral impact over the longer term,' it said. HLIB Research has maintained a 'buy' call on TNB with an unchanged target price of RM16.20. 'Looking ahead, we expect Tenaga to benefit from a higher Regulated Asset Base starting in 2025 under RP4-RP5 (2025-2030), as well as new tenders for gas power plants and renewable energy projects. 'We view any short-term share price weakness as a buying opportunity for long-term investors,' it said. Meanwhile, TA Securities stated that they understand no provisions have been made for the disputed amount, given TNB's success in the case at multiple levels previously. 'As such, in the worst case that TNB provides for the RM1.25bil claim by the IRB, we estimate a -27% one-off hit to FY25F earnings and a -2% impact on net assets. However, we believe any decision to provide for the amount hinges on the progress made with IRB on TNB's Schedule 7B IA claim,' it said. TA has maintained its "buy" call and target price of RM17.30. 'While this could be a one-off setback, albeit a sizeable one, it does not derail our structural thesis of an expansion in TNB's regulated asset base from an increase in grid capex to accommodate the energy transition. 'We note the sharp -2% (or -30sen) share price correction yesterday, which we believe may have more than reflected the potential RM1.25bil provision (which is equivalent to 21 sen per share),' it added.
