In May last year, it was reported that Tan Chong Motor Holdings’ subsidiary Tan Chong Motor Assemblies (TCMA) had been slapped with a RM180.11 million bill by the customs department for excise duties from November 1, 2016 to October 31, 2019.
Last month, the company said that the sum for excise duties had been reduced to RM109 million, 40% lower than originally, and that it would be settling its bill out of court. Earlier this week, in a filing with Bursa Malaysia, the company announced that the sum will be settled via instalment payments over a period of 36 months, The Edge reports.
The company said that following a payment of RM10.81 million made on April 20, the remaining balance of RM97.26 million would be paid via 36 equal monthly instalments of RM2.7 million from May 2021 to April 2024, which translates to RM8.1 million being paid each quarter over the next three years. With the arrangement, the customs department said that the matter has been settled accordingly.
TCMA is the automotive group’s manufacturing subsidiary. It began operations in 1976 at its Segambut plant in Kuala Lumput, later expanding production at a new facility in Serendah, Selangor. The company also maintains assembly plants in Da Nang, Vietnam and Yangon, Myanmar.
The subsidiary has produced more than a million passenger and commercial vehicles for Nissan, Renault, Subaru, Mitsubishi, UD Trucks, Foton and Bison trucks.
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Berita memalukan brand lain diwar-warkan. Berita bayaran “Happy Operation Entity” Proton apa citer dah?
nama pon Happy Operation. kalau diwar-warkan nanti jadik pulak tak Happy..stay heppi.
Good strategy. Wait until get into court, settle outside plus get 40% discount. Better than pay on time. Put aside in FD, easy money some more during that time.
Aiyah..just call Anthony Tan..of Grab USA 40 Billion dollar listing soon..sub sub sooi,,Tan Chong
or TanChong change nama to naza, drb, darby.
I really don’t get the government approach rewarding late payer with discounts where it should be the other way around. Is the government encouraging the companies and public to avoid payment or delay payment in order to get hefty discount?
try look at the bigger picture dude.
did it ever cross your mind that there is a possibility that the government is milking money from them? if you are fortunate enough to make it that far one day perhaps you will feel sorry for those victimised by them
I think it’s a law and every country has their own law and regulations to abide with. It is clearly stated that TCM was not paying and you play blaming games? Other companies can obey the rules, why can’t TCM do so?
Tne tax figures maybe incorrectly calculated. Hence settlement after agreement to right amount reached
Not really. More to discount on penalty for late payment. But still, not fair to ontime tax payer.
Every company, especially big ones hire Tax Consultants to manage their taxes.
amount paid is after extensive consultation and the consultation might involve multiple queries to the LHDN.
however, as been the case lately the Taxman just comes to you, did their audit and says you have underdeclared by this XXXX amount.
you then have to argue with them etc.
this is happening a lot and even government linked companies that not only pay taxes, they even declares dividend to government got this treatment too.
Tenaga was slapped with RM1.8 billion back taxes bill. all previous tax breaks was argued..
so you know not necessarily the company’s fault.
and you wonder why foreign companies set-up shop elsewhere