Maxis unit gets RM72 mil additional tax bill from IRB

KUALA LUMPUR (April 20): Maxis Bhd said its subsidiary has been served with an additional tax bill, including penalty, of RM71.7 million for the year of assessment 2021.

Its wholly-owned subsidiary, Maxis Broadband Sdn Bhd (MBSB), was served with the notice from the Inland Revenue Board on Wednesday, Maxis said in a bourse filing on Thursday (April 20).

“The notice was raised mainly pursuant to the disallowance of MBSB’s deduction of interest expenses incurred during the said year of assessment and hence, similar in nature with the notices received in the past years in respect of years of assessment 2016 up till 2020.

“Based on legal advice obtained, MBSB will initiate legal proceedings to challenge the basis and validity of the disputed notice raised by the Director General of IRB and the penalty imposed,” Maxis said.

The group added that there will not be any imminent financial effects on Maxis pending the outcome of the legal proceedings.

In a separate bourse filing on Thursday, Maxis announced that Raja Tan Sri Arshad Raja Tun Uda, 76, is retiring from his post as a non independent and non executive director of the group from May 18.

Raja Arshad holds 750,000 ordinary shares in Maxis. Raja Arshad earlier stepped down as the group’s chairman on April 22, 2021 after chairing the group for 11 years since its listing in 2009.

On Thursday, share price of Maxis settled up five sen or 1.17% at RM4.34, valuing the group at RM33.98 billion.