Cabinet cancels Utar’s RM83mil tax bill, says report

 

Earlier it was reported that Utar would be appealing LHDN’s decision to impose outstanding taxes and penalties on its income. (Facebook pic)

PETALING JAYA: 

The Cabinet has decided to write-off the RM83 million owed by Universiti Tunku Abdul Rahman (Utar).

According to Sin Chew Daily, transport minister Loke Siew Fook said that Prime Minister Anwar Ibrahim, who is also the finance minister, had instructed Treasury secretary-general Johan Mahmood Merican to send a formal letter to Utar to notify it of the Cabinet’s decision. 

The letter will be published soon, signalling an end to the issue,

 Loke was quoted as saying, when asked if there was any truth to a claim that the government had decided to cancel the sum, which was imposed by the Inland Revenue Board (LHDN).

Last week, Sin Chew Daily reported that Utar Education Foundation (Utaref) was hit with an RM83 million tax bill, which included fines of up to 45%.

The daily quoted sources who said the move meant Utaref’s tax-exempt status, which the foundation had enjoyed since 2003, had been revoked.

However, deputy finance minister Lim Hui Ying denied the claim, adding that Utaref’s tax-exempt status, granted under Section 44(6) of the Income Tax Act, remains unchanged.

She also said Utar would be appealing LHDN’s decision to impose outstanding taxes and penalties on its income. - FMT