Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 30): The High Court here today granted Tenaga Nasional Bhd (TNB) leave to initiate a judicial review against the government over additional taxes amounting to RM1.81 billion.

Justice Datuk Seri Mariana Yahya granted leave to TNB, which was represented by senior lawyer Rosli Dahlan and tax law counsel expert S Saravana Kumar.

TNB was slapped with a notice of additional assessment for 2018 from the Inland Revenue Board (IRB) for RM1.81 billion.

The dispute arose when IRB disallowed TNB's claim for reinvestment allowance under Schedule 7A of the Income Tax Act 1967 on the power plants that it built.

IRB took the position that TNB was not entitled to claim reinvestment allowance as TNB did not manufacture electricity but was merely a service provider.

TNB submitted that the IRB is bound by the Federal Court decision in Majlis Perbandaran Seberang Perai, which states that TNB is in the business of manufacturing electricity.

Furthermore, the internal interpretation of the IRB is not binding upon the taxpayer and the court.

Justice Mariana agreed with TNB's submissions, saying that there were exceptional circumstances in this case which warranted the leave for judicial review to be granted and for the full merits of their argument to be heard.

TNB also received additional notices of assessment for the Years of Assessment 2015, 2016 and 2017 on the same issue amounting to RM4.5 billion.

IRB was represented by senior revenue counsels Dr Hazlina Hussain, Muazmir Mohd Yusuf and Nordiana Sham.

Meanwhile, senior federal counsel Aisyaf Fazlina Abdullah Bakar appeared for the Attorney General's Chambers.

As at 3.11pm, TNB's share price was up two sen or 0.19% to RM10.62, valuing the company at RM60.36 billion.

Edited ByLam Jian Wyn
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