Wednesday, January 12, 2011

Taxman seeks RM5.3m taxes from Wijaya Baru unit

KUALA LUMPUR: The Inland Revenue Department (IRD) has taken legal action against WIJAYA BARU GLOBAL BHD []'s unit Usama Industries Sdn Bhd to recover RM5.31 million in tax deemed payable in the year of assessment 2003.

Wijaya Baru said on Wednesday, Jan 12 it had received a writ of summons and statement of claim from the IRB over the amount owed by Usama Industries. The writ of summons dated Nov 30, 2010 and statement of claim dated Nov 29, 2010 was filed by the IRD in the High Court of in Sabah and Sarawak in Kuching.

However, Wijaya Baru explained that Usama Industries had not been a major subsidiary since July 2010. Its original cost of investment was RM200 million, but as at Dec 31, 2009 the cost of investment was RM46.79 million.

It said the legal suit was not expected to have any material financial and operational impact on UISB as the group had adequate resources to meet the commitment of the alleged claim.

'Usama Industries does not expect any loss to arise from the legal suit. However, the expected losses, if any, are legal costs and fees arising from handling the legal suit.

'The company's solicitor is currently addressing this matter and the management will continue its best efforts to negotiate with the plaintiff to resolve it in an amicable manner,' said Wijaya Baru.


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