206 Annual Report 2021 36. CONTINGENT LIABILITIES (CONT’D) O n 23 November 2021, SKSB submitted EOT number 5, for period from 10 June 2020 to 17 October 2021 together with the above mentioned EOT 2, EOT 3 and EOT 4. B ased on legal opinion obtained, the directors of SKSB are of the opinion that SKSB’s LAD could not be estimated until and unless PAK has completed the assessment of EOT 3 as the date by which SKSB is required to complete the Construction Works remains uncertain. I n view of the uncertainty, there is no revised completion date from which the LAD could be computed and PAK’s right to impose LAD pursuant to DCLA cannot be triggered. Accordingly, SKSB has not made any provision in the financial statements and only disclosed as contingent liabilities. (b) On 4 January 2021, PT Maju Kalimantan Hadapan (“PTMKH”), a subsidiary of the Company, received a tax assessment letter from the Indonesia’s Director General of Tax (“DGT”) for the year of assessment 2019, to restrict the claim on management fee incurred by PTMKH amounted to IDR21,855 million, equivalent to RM6.37 million. Based on applicable corporate income tax of 25%, the restricted amount of the management fee will result in additional tax liability of IDR5,464 million, equivalent to RM1.59 million in the financial statements of the Group and PTMKH. The management fee was charged by MKH Resources Sdn. Bhd., a subsidiary of the Company, in respect of management services rendered to PTMKH. O n 1 April 2021, PTMKH filed an objection letter in reply to above tax assessment letter. On 24 December 2021, the objection letter has been rejected by tax appeal office in Balikpapan, Indonesia. PTMKH will further proceed the appeal to tax court in Jakarta, Indonesia. B ased on consultation with the local tax experts, the directors of PTMKH are of the opinion that PTMKH has a valid defense against DGT’s assessment. Accordingly, PTMKH has not made any adjustments in respect of the tax assessment in the financial statements of the Group and PTMKH. 37. CAPITAL COMMITMENTS As at the reporting date, the Group has the following capital commitments: The Group 2021 2020 RM RM Approved and contracted for 8,326,707 16,299,446 Approved and not contracted for 21,882,735 10,576,422 30,209,442 26,875,868 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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