KUALA LUMPUR, May 20 — Malaysia’s licensed gaming pioneer Magnum Bhd and its wholly-owned investment unit Magnum Holdings Sdn Bhd (MHSB) have been served notices of assessment with penalties totalling RM476.47 million by the Inland Revenue Board (IRB).
The public-listed four-digit betting company told Bursa Malaysia in a filing yesterday that it had been ordered to pay RM22.71 million for years of assessment 2008 and between 2011 and 2015; while MHSB was ordered to pay RM453.75 million.
The Star daily reported the IRB disallowed the deduction of interest expenses and loan stock interest expenses incurred by MHSB for certain investments and selective capital repayments, and the parent company’s privatisation exercise in 2008.
It was previously known as Magnum Corporation Berhad before going private as Magnum Corp Sdn Bhd in 2008.
“Upon consulting its solicitors, the board is of the view that there are reasonable grounds to challenge the validity of the notices of assessment raised by the DGIR and the penalty imposed,” Magnum was quoted saying.
The company was also reported saying there won’t be any imminent financial effects on the group as it is seeking a stand over of payment pending resolution of the matter.
The Edge reported separately that Magnum's first financial quarter which ended March 31 saw its net profit drop 55.6 per cent to RM30.57 million compared to RM68.84 million a year ago due to lower gaming sales and weak consumer spending.