NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) 18. Amount due from/(to) associates Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Amount due from associates - Trade 65,450 65,450 42,750 42,750 - Non-trade 29,837 29,833 29,807 29,805 95,287 95,283 72,557 72,555 Less: Allowance for ECLs (95,255) (95,255) (72,555) (72,555) 32 28 2 # Amount due to associates - Non-trade (22) (24) - - # - represents an amount less than RM1,000 Amount due from/(to) associates are unsecured, non-interest bearing and repayment on demand. 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 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. 19. Amount due from joint ventures Amount due from ventures are non-trade in nature, unsecured, non-interest bearing and repayment on demand. 214
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