Notes to the Financial Statements for the Financial Year Ended 30 September 2024 MKH BERHAD ANNUAL REPORT 2024 Laying The Foundation of Excellence Where People Matter Guided by Leadership, Inspired by People Delivering Value That Matters to People PG. 210 8. TAX EXPENSE (CONT’D) Under the Indonesia tax regulations, the unused tax losses can be utilised within 5 years after the losses were incurred. Business loss incurred in year of assessment 2024 RM Carried forward up to YA Unutilised amount will be disregarded in YA 2023 2,956,900 2028 2029 2024 3,746,400 2029 2030 6,703,300 Tax Assessments YA2019 On 7 January 2012, PT Maju Kalimantan Hadapan (“PTMKH”), a subsidiary of the Company, received a Notice of Tax Overpaid Assessment from the Indonesia’s Director General of Tax (“DGT”) amounting to IDR29,816 million, equivalent to RM8.68 million for the year of assessment 2019. On 1 April 2021, PTMKH filed an objection letter in reply to the above Notice of Tax Overpaid Assessment, as management are of the opinion, PTMKH should have tax refund amounting to IDR35,281 million, equivalent to RM10.27 million. DGT has restricted the claim on management fee incurred by PTMKH amounted to IDR21,855 million, equivalent to RM6.37 million which resulted in additional tax liability of IDR5,464 million, equal to RM1.59 million. On 24 December 2021, the objection letter has been rejected by tax appeal office in Balikpapan, Indonesia. On 18 March 2022, PTMKH filed an appeal to tax court in Jakarta, Indonesia. On 24 August 2022, PTMKH received a notice of tax hearing from Jakarta’s tax court to attend the said tax appeal on 7 September 2022. The Jakarta’s tax court had requested PTMKH to provide additional analysis and summary report for the tax assessment during the tax hearing on 7 September 2022, 5 October 2022, 9 November 2022, 7 December 2022, 25 January 2023, 22 February 2023, 29 March 2023 and 17 May 2023. As at to date, the Jakarta’s tax court has yet to make a conclusion on PTMKH appeal to the abovementioned. Based on consultation with the local tax experts, the directors of PTMKH are of the opinion that PTMKH has a valid defence 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.
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