MyEG Sdn Bhd, a wholly owned subsidiary of Zetrix AI Bhd, has been issued a RM353.13 million tax assessment by the Inland Revenue Board over transfer pricing for the 2021, 2022 and 2023 years of assessment.
In a Bursa Malaysia filing on Thursday, Zetrix said the assessment, received on Wednesday, comprises RM333.11 million in additional income tax and RM20.02 million in deemed interest including penalties. Transfer pricing concerns how related companies price dealings between themselves.
The same letter informed MyEG that the government has filed a civil suit against it over the matter.
Zetrix said MyEG is confident of its position and has appealed the additional assessments to the Special Commissioners of Income Tax, while also seeking an amicable settlement with the tax authority. It said it will defend itself through the proper legal channels and update the market on any material developments.
The tax claim follows a statement in the Dewan Rakyat on Tuesday by Transport Minister Loke Siew Fook that the government was taking legal action against Zetrix and MyEG over an alleged failure to remit RM314 million collected on behalf of the Road Transport Department, which he called a serious breach of their agreement.
In a separate filing, Zetrix said it has yet to receive any official letter from the government on that matter.