KUALA LUMPUR: Aeon Credit Service (M) Bhd was served with notices of notices of additional taxes and penalties amounting to RM96.82 million by the Inland Revenue Board (IRB).
In a filing to Bursa Malaysia today, the company said it was served with notices of additional assessment for the years of assessment 2010 to 2016 with penalties by the IRB.
"The company has appointed tax solicitors and is initiating proceedings to challenge the validity and legality of the said notices of additional assessment," it said.
The company said the taxes and penalties were in relation to the IRB varying the loan transaction collaterised by receivables undertaken by the company with a local financial institution to that of a sale of receivables.
However, Aeon Credit said the IRB did not specify which provision of the Income Tax Act 1967 in making this variation.
Aeon Credit said there are reasonable grounds to challenge the validity of the notices of additional assessment raised by the IRB and the penalties imposed.
“This is especially so when at all material times, the company had sought professional advice from an independent and reputable audit and tax firms on its accounting and tax treatment and further, the assessments for the years of assessment 2010 and 2011 are time barred,” it said.