KUALA LUMPUR (Nov 13): The Inland Revenue Board has withdrawn its appeal against a High Court decision to allow a judicial review sought by Tune Protect Group Bhd’s subsidiary Tune Insurance Malaysia Bhd (TIMB), relating to a tax dispute concerning RM10.7 million.

The matter involves the deductibility of the provision of risk margin for adverse deviation (PRAD) expenses borne by TIMB that amounted to RM7.3 million, Tune Protect's bourse filing today read.

Following the withdrawal of the appeal by the Director General of Inland Revenue (DGIR), a consent order — a form of settlement between the two parties to settle the dispute — was entered at the Court of Appeal. Among its terms was that the PRAD expenses borne by TIMB for the years of assessment 2013, 2014 and 2015 are allowed for deduction for income tax purposes.

Subsequently, the DGIR will issue the Notices of Reduced Assessment for the three years within 90 days from the date of the order.

The consent order also dictates that the High Court order dated May 23, 2019, which is the order that a judicial review is allowed for, is affirmed.

“With this, the payment of taxes for the other tax matters appealed by TIMB pending before the Special Commissioner of Income Tax is stayed until the appeal is concluded,” Tune Protect’s filing said.

Tune Protect shares closed 1.5 sen or 4.4% lower at 33 sen today, giving it a market capitalisation of RM248.08 million.