MMC Corp's shares fall 3.42% on additional income tax bill

PETALING JAYA: MMC Corp Bhd's share price fell seven sen or 3.42% this morning, after the group was slapped with an additional income tax and penalty totalling RM45.91 million by the Inland Revenue Board (IRB).
At 10.50am, the stock stood at RM1.98 with 63,500 shares changing hands, giving it a market capitalisation of RM6.24 billion.
According to the group, the additional income tax for the years of assessment 2011 and 2013 was for interest expenses of certain investments which did not qualify for tax deduction under Section 33 of the Income Tax Act, 1967.
Upon consulting its tax counsel, MMC said it has found reasonable grounds to appeal IRB's move.
Nevertheless, the group said it will be making full payment of the additional income tax on a without prejudice basis to the IRB.