My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 188 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 19. AMOUNT OWING BY/(TO) ASSOCIATES The Group The Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Amount owing by: - trade 65,450 65,450 42,750 42,750 - non-trade 29,810 30,006 29,805 30,000 95,260 95,456 72,555 72,750 Less: Allowance for impairment losses (95,255) (95,450) (72,555) (72,750) 5 6 # - Amount owing to: - non-trade 33 - - - Allowance for impairment losses under MFRS 9:- At 1 January 2020/ 1 October 2018 (95,450) (95,450) (72,750) (72,750) Reversal during the financial year 195 - 195 - At 31 December 2020/2019 (95,255) (95,450) (72,555) (72,750) # represents an amount less than RM1,000 The trade balance relates to the development work for the online tax monitoring project (“the Project”) and is repayable upon the commencement of the said project. On 3 December 2014, the Company received a revised letter of award under the service tax regime to develop the Project. Nevertheless, the Goods and Services Tax (“GST”) was implemented on 1 April 2015 and the service tax regime was replaced by the GST regime whereby the Project has been varied. Accordingly, the Project was being reviewed to cater for certain requirements and enhancements following the implementation of GST. A technical committee together with a steering committee have been established by the relevant authorities for this purpose. The amendments to the relevant Act for the purpose of the implementation of the Project have been completed and came into effect from 1 January 2017. An internal trial run was carried out to ensure any further technical issues in relation to the Project are resolved prior to commercialisation in the near future. Effective 1 June 2019, it was announced by the Ministry of Finance (“MOF”) that a zero-rated GST will be imposed. Subsequent to this announcement, the GST regime has been abolished and replaced by the Sales and Services Tax (“SST”). Hence, the Project has been temporarily suspended. Accordingly, full impairment on the amount owing by the associate has been provided in the financial period ended 2018. 20. AMOUNT OWING BY JOINT VENTURES The non-trade balances represent unsecured interest-free advances and payment made on behalf. The amount owing is to be settled in cash.