Aspen Group said Wednesday Aspen Vision Land (AVL) and three other group subsidiaries have entered agreements with the director general of the Inland Revenue Board (IRB) of Malaysia for payment of 56.40 million ringgit as a full and final settlement of all potential additional tax claims for 2014-2020.
“The board would like to emphasise that the settlement with the IRB is not an admission of liability or that the group had carried out tax
evasion or concealment of information to the IRB. The settlement is undertaken because the company does not wish to be engaged in a protracted litigation with the IRB and wishes to resolve the matter amicably and expeditiously,” Aspen Group said in a statement filed to SGX.
Around 19.63 million ringgit has been paid to the IRB upon the signing of the agreement, with the remaining around 36.77 million ringgit to be settled via installment payments over six years, Aspen Group said.
The settlement isn’t expected to have a material impact on the current financial year as the IRB agreed that around 40.73 million ringgit from AVL’s total tax liability can be claimable as a tax credit in the Aspen Vision City development for past, current and future projects, along with unsold inventory on hand, the filing said.
In August, Aspen Group had said it had received notice from the IRB that its wholly owned indirect subsidiary Aspen Vison Land owed an additional assessment, including penalty, totaling 175.44 million ringgit in relation to a land-sale transaction in 2014.
That was due to IRB treating the transaction value as a “gain” for income tax purposes, without recognising any costs, Aspen Group said in August, calling it an “erroneous treatment” and saying it planned to proceed with an appeal.
In September, the company said Aspen Vision Land had initiated legal proceedings in the High Court for leave to commence judicial review and a stay of the enforcement notice pending the review determination.
On Wednesday, Aspen Group said AVL will withdraw its application to the High Court.