My EG Sdn Bhd (MyEG), a wholly owned subsidiary of Zetrix AI Bhd, is facing an additional RM353.13 million income tax assessment from the Inland Revenue Board (LHDN), alongside a civil suit filed by the Malaysian government.
According to Zetrix AI's 29 October Bursa Malaysia disclosure, the assessment covers transfer pricing matters for the years of assessment 2021 to 2023. MyEG received LHDN's letter on 28 October and has since appealed the assessment.
The development comes amid a separate dispute involving approximately RM314 million in government revenue and penalties linked to Road Transport Department (JPJ) collections.
- RM353.13 million: Additional LHDN tax assessment covering 2021 to 2023.
- Civil suit: The Malaysian government has filed legal proceedings concerning the tax matter.
- MyEG's response: The subsidiary has appealed the assessment and is seeking a resolution with LHDN.
- For motorists: No additional motoring-service suspension was announced in the tax disclosure. The RM314 million JPJ dispute is separate.
How Did The RM353.13 Million Tax Assessment Arise?
The additional assessment totals RM353,134,026.20, consisting of income tax relating to transfer pricing and deemed interest, including penalties.
Transfer pricing concerns how transactions between related companies are priced. Tax authorities may review these arrangements to determine whether they comply with applicable tax requirements.
LHDN's letter also notified MyEG that the Malaysian government had filed a civil suit concerning the tax matter. However, the assessment is being contested and does not constitute a court finding against the company.
MyEG has filed an appeal before the Special Commissioners of Income Tax and is seeking an amicable resolution with LHDN. Zetrix AI said its subsidiary remains confident in its position and will announce any material developments.
How Is This Different From The RM314 Million JPJ Dispute?
The tax assessment follows a separate dispute involving approximately RM314 million in outstanding government revenue and penalties linked to JPJ-related collections. Zetrix AI's role as a JPJ collection agent was suspended earlier in October.
Transport Minister Anthony Loke said the government intended to pursue legal action over the arrears. However, in a separate Bursa Malaysia disclosure dated 29 October, Zetrix AI said it had not received official correspondence concerning the reported action.
Frequently Asked Questions (FAQ)
Why is MyEG facing a RM353.13 million tax assessment?
LHDN issued an additional income tax assessment concerning transfer pricing matters for the years of assessment 2021, 2022 and 2023. The total includes additional income tax and deemed interest, including penalties.
Has MyEG appealed the tax assessment?
Yes. MyEG has filed an appeal before the Special Commissioners of Income Tax and is seeking an amicable resolution with LHDN.
Has the Malaysian government filed a civil suit against MyEG?
Yes. Zetrix AI disclosed that MyEG had received notification of a government civil suit concerning the tax matter. The disclosure does not establish a court finding of liability.
Is the RM353.13 million tax case related to the RM314 million JPJ dispute?
No. They are separate matters. The RM353.13 million assessment concerns LHDN and income tax, while the approximately RM314 million dispute concerns government revenue and penalties linked to JPJ collections.
Can motorists still use MyEG for road tax renewals?
The latest tax disclosure does not announce an additional suspension of motoring services. However, the earlier JPJ collection-agent suspension is a separate issue. Motorists should check current service availability through official JPJ or authorised service-provider channels.
