KUALA LUMPUR, YTL Power International Bhd has successfully overturned a tax assessment related to its A$1.03 billion (RM2.8 billion) sale of Australian electricity transmission operator ElectraNet Pty Ltd in 2022, saving the group from a potential A$284.32 million (RM877 million) capital gains tax bill.
According to a report by Accounting Times, Australia’s Federal Court ruled on Oct 30 that the disposal was not subject to capital gains tax, as ElectraNet’s transmission network lease assets were not considered “taxable Australian real property.”
The ruling follows a long-running dispute between YTL Power and the Australian Commissioner of Taxation, who may still appeal the decision.
YTL Power, through its wholly owned subsidiary YTL Power Investments Ltd, previously held a 33.5% stake in ElectraNet, which it sold to Australian Utilities Pty Ltd. The divestment contributed a disposal gain of RM1.27 billion to the group in its 2022 financial year.
Before this court win, YTL Power had appealed the assessment with Australia’s tax authorities, but the appeal was dismissed, prompting the company to take the case to court.
Shares of YTL Power closed two sen or 0.51% lower at RM3.88 on Tuesday, giving it a market capitalisation of RM33.68 billion.
