KUALA LUMPUR, Sept 2 — DRB-Hicom Bhd said it will appeal and, if required, initiate legal proceedings to challenge the basis and validity of the assessment notice from the Inland Revenue Board (IRB) amounting to RM246.25 million (including penalty) for the assessment year 2020.

In a filing with Bursa Malaysia today, DRB-Hicom said the notice received by its subsidiary, Hicom Holdings Bhd (HHB) on Friday (Aug 30) was raised pursuant to IRB’s decision to treat a gain from the disposal of a long term investment held in a subsidiary as income subject to tax under Section 4(a) of the Income Tax Act 1967 for the year of assessment 2020.

"HHB is given 30 days from the date of the notice to appeal against the IRB’s decision.

"Upon consulting its tax counsel and solicitors, HHB is of the view that there are valid legal grounds to defend against the notice,” it added.

"DRB-Hicom will make further announcement if there are any material developments pertaining to this matter,” it said. — Bernama