DRB-HICOM announced that it has received a Notice of Assessment from the Inland Revenue Board for the year of assessment 2020 amounting to RM246 million including penalty.

The group recorded a profir of RM554 million during its financial year 2020 closing in December after recording a revenue of RM13 billion, the profits were from among others due to disposal of assets.

The Notice was raised in view of the IRB's decision to treat a gain from the disposal of a long term investment held in a subsidiary as income subject to tax under the Income Tax Act 1967 for the year of assessment 2020.

The group has been given 30 days from the date of the Notice to appeal against the decision.

DRB said upon consulting its tax counsel and solicitors, it is of view that there are valid legal grounds to defend against the Notice and will appeal and if required, initiate legal proceedings to challenge the basis and validity of the Notice.