KUALA LUMPUR, UOA Development Bhd said its subsidiary, Distinctive Acres Sdn Bhd, has received an additional tax assessment with penalties totalling RM165.66 million over the 2020 disposal of UOA Corporate Tower in Bangsar South to UOA Real Estate Investment Trust.
According to UOA Development’s filing to Bursa Malaysia, the Inland Revenue Board (IRB) ruled that the gain from the sale is subject to corporate income tax rather than real property gains tax (RPGT).
The company, however, said it disagrees with the assessment and, based on advice from its tax consultant, believes it has a strong case to challenge the IRB’s decision. It plans to file an appeal within 30 days, noting that there will be no immediate financial impact pending the outcome.
Earlier this month, UOA Development announced plans to sell three properties in UOA Business Park near Subang Jaya to UOA REIT for RM200 million, a deal expected to be completed by fourth quarter 2025 and generate a net gain of RM35.8 million.
Shares of UOA Development closed unchanged at RM1.84, valuing the group at RM4.89 billion, while UOA REIT also ended flat at 84.5 sen, with a market value of RM570.9 million.
