The Inland Revenue board which issued a notice of additional assessment in 2020 for the sum of RM1,812,506,384.64 (RM1.8 billion) for the year of assessment 2018 will be finding itself unable to collect them as the High Court had struck out the case.
According to Bursa filing by Tenaga Nasional, the High Court had allowed with cost Tenaga Nasional Berhad’s judicial review application to set aside the IRB’s notice of additional assessment dated 13 July 2020 for the year of assessment 2018. The High Court agreed with the submission of TNB’s legal counsel that TNB is in the business of manufacturing electricity and as such, TNB is entitled to claim reinvestment allowance on the capital expenditure which was incurred in the year of assessment of 2018 in the course of expanding, modernising and automating its business.
The result is a major win for the electricity giant as this will pave the way for more cases that are pending with similar relevance.
