Press Metal will pay RM 27 million tax to settle scores with Inland Revenue Board

Malaysian Press Metal Aluminium declared that its Sarawak subsidiary is approved of an ‘amicable settlement’ with the Inland Revenue Board (IRB) for the additional settlements of the years 2014 to 2019.

Concurring to a letter sent from the IRB head office dated 22nd April, a subsidiary of Press metal PM Bintulu Sdn Bhd has settled on a sum of RM 26.74 million after a thorough assessment, as revealed by the company.

Earlier, the group’s additional assessment had amounted to RM 106.06 million for 2014-2019, as was announced by the company on November 26, 2021. 

Press Metal said that during that time, IRB had authorized additional income tax “based on its view that certain income does not fall under pioneer status exemption approved by Malaysian Investment Development Authority (MIDA)”.

The final settlement will be paid in eight equal parts through the month of May till December 2022.

According to the Group's financial results, it paid RM 67.74 million tax in 2020 while RM 116.23 million tax in 2021.

The ultimate settlement will be reflected in the financial statements for the fiscal year ended December 31, 2021. It is hoped that this entire transaction does not physically or materially impact the financial position and performance of the Press Metal group.

“With the above, the tax dispute between PM Bintulu and the IRB has been closed,” remarked the group.

Press metal shares fell by 4.04 per cent to close at RM 6.17 on Monday, securing the group a market capitalisation of RM 50.84 billion. On a year to date scale, the margin is up 6.74%.

Press Metal opened as a local aluminium extrusion company in 1986 but today is one of the busiest producers of aluminium extrusions for technology giants, high-speed train makers, innovative product designers and household food and beverage brands.