PETALING JAYA: The Federal Court has decided in favour of the Inland Revenue Board (IRB) against property developer UEM Sunrise Bhd’s unit, Bandar Nusajaya Development Sdn Bhd, in the matter of the additional assessment dated Sept 22, 2011 that was served on Bandar Nusajaya Development.

UEM said in a filing with Bursa Malaysia that the additional assessment comprising RM50.92mil in additional taxes and RM22.91mil in penalty has now become due and payable.

The court has instructed Bandar Nusajaya Development to follow the alternative appeal route provided under Section 99 of the Income Tax Act 1967 and appeal this matter to the Special Commissioners of Income Tax.

The company said Bandar Nusajaya Development would immediately commence its appeal before the Special Commissioners of Income Tax by filing an application for extension of time to lodge an appeal pursuant to Section 100 of the Income Tax Act 1967.

Bandar Nusajaya Development had at that time said the grounds for the appeal were valid and hence no additional provision for income tax was made.

UEM Sunrise, then known as UEM Land Holdings Bhd, had at that time also said there would not be any significant financial and operational impact as a result of this additional assessment.

However, on Sept 4, 2012, the Kuala Lumpur High Court, which had allowed Bandar Nusajaya Development’s judicial review application to set aside the additional tax assessment, had ruled in favour of Bandar Nusajaya Development and declared that the IRB “had no legal basis to raise the additional tax assessment”.

On May 22, 2014, UEM said the Court of Appeal, after having heard and considered the submissions by the parties concerned, had unanimously upheld the decision of the Kuala Lumpur High Court in favour of Bandar Nusajaya Development, with the IRB’s appeal dismissed with cost.