ASTRO Malaysia Holdings Bhd (Astro) is embroiled in a significant tax dispute with Malaysia’s Inland Revenue Board (LHDN), with the tax authority seeking over RM734 mil in additional taxes and penalties for the years spanning 2019 to 2023.
LHDN issued notices to Astro’s subsidiaries, Astro Shaw Sdn Bhd and Measat Broadcast Network Systems Sdn Bhd, on July 9. These notices detail additional taxes amounting to RM22,011,627 and RM712,865,984 respectively, citing the disallowance of production costs incurred during the specified years.
“The notices were served pursuant to the disallowance of production costs incurred during the mentioned years,” it said in a Bursa filing yesterday (July 11).
The tax demands, which represent approximately half of Astro’s total share value, have sparked a proactive response from the company. Both subsidiaries have been granted a 30-day window to appeal LHDN’s decision.
Moreover, Astro indicated that legal advice supports its position to appeal, citing fair and reasonable grounds to challenge the validity and basis of the notices.
“Therefore, both companies intend to appeal and, if required, initiate legal proceedings to challenge the basis and validity of the notices,” Astro affirmed. – July 12, 2024
