KUALA LUMPUR: Aeon Credit (M) Service Bhd fell to its two-month low of RM13.06 after the Inland Revenue Board issued notices of “additional assessment with penalties” to it involving a collective RM96.82 million for the 2010 to 2016 assessment years.
The share price was 1.36 per cent lower than Wednesday’s close of RM13.24. It opened much lower at RM12.90 in early trade.
The stock, however, saw 35.30 per cent higher trading volume to 560,800 shares than Wednesday.
Aeon Credit was served with notices of additional assessment for the years of assessment 2010 to 2016 with penalties by the IRB.
“The taxes and penalties were in relation to the IRB varying the loan transaction collaterised by receivables undertaken by the company with a local financial institution to that of a sale of receivables,” the company said.
However, Aeon Credit said it has appointed tax solicitors and is initiating proceedings to challenge the validity and legality of the said notices of additional assessment.
Aeon Credit added that there are reasonable grounds to challenge the validity of the notices of additional assessment raised by the IRB and the penalties imposed.
“This is especially so when at all material times, the company had sought professional advice from an independent and reputable audit and tax firms on its accounting and tax treatment and further, the assessments for the years of assessment 2010 and 2011 are time barred,” it said.