TNB shares slip at mid-morning after RM840.1m IRB tax notice
At 10.51am, the counter fell 18 sen to RM13.42 with a total of 2.91 million shares traded.
In a note today, CIMB Securities Bhd said the issue was due to the cumulative amount from notices seeking additional assessment for the years 2013–2021 of RM5.05 billion, net of remission of penalties and RM1.76 billion paid to IRB in December 2020, for 2016-2017, bringing the total to RM5.89 billion to date.
'We believe there is a risk that the IRB may also potentially issue a notice of additional assessment for 2023–2024.
'If TNB's 2023-2024 financial year capital expenditure provides any indication, we think the additional tax assessment for 2023–2024 could be around RM2 billion, which raises the total amount for 2013–2024 to nearly RM8 billion,' it said.
The investment bank also said in light of the Federal Court's decision regarding a similar notice for 2018, TNB is currently evaluating its available legal options to address the issue.
'This evaluation takes into consideration that TNB has already applied for investment allowance (IA) under Schedule 7B of the Income Tax Act 1967 (including those for 2022) to the Finance Minister,' it said.
Therefore, CIMB Securities has maintained a 'Buy' call on TNB with a target price of RM15.75 per share.
On July 2, the Federal Court's final ruling allowed the IRB's appeal, overturning the decision by the High Court and the Court of Appeal, which had previously ruled in favour of TNB's judicial review application to set aside the notice of additional assessment amounting to RM1.25 billion for 2018.
The Federal Court ruled that the applicable tax schedule for TNB should be 7B (IA), instead of Schedule 7A (reinvestment allowance). — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
20 minutes ago
- Malay Mail
KAF Digital Bank gets nod from BNM to open services to public starting today
KUALA LUMPUR, Aug 8 — KAF Digital Bank has received approval from Bank Negara Malaysia (BNM) to begin onboarding the public after successfully completing its PERINTIS Phase, Fintech News Malaysia reported. According to the report, services will be available through the bank's mobile app starting today. During the PERINTIS Phase, the bank tested its systems, security protocols and user experience with a select group of participants. Feedback from this group was used to refine the platform to ensure a smooth and secure rollout. According to the report, KAF Digital Bank offers Shariah-compliant services including savings accounts, virtual debit cards and payment features, with its platform aimed at improving financial access through a user-friendly, technology-driven approach. To mark the launch, the bank is introducing three campaigns — 'Daftar & Menang', 'Imbas & Kumpul' and 'CelikWang' — in partnership with POD. These initiatives reward users for completing financial education activities and transactions, with prizes such as vehicles, travel packages and gift vouchers through a loyalty programme. The report said the bank is backed by KAF Investment Bank and supported by local partners including Carsome, MoneyMatch, Jirnexu and StoreHub. The app will be available for download on the Apple App Store and Google Play Store from today. 'We are thrilled to receive the green light from the regulators to open our doors to the public. 'The successful completion of our PERINTIS Phase is a testament to the hard work and dedication of our team, and it underscores our commitment to delivering a truly innovative and seamless digital banking experience. ' We thank the PERINTIS users for their invaluable feedback,' KAF Digital Bank chief executive officer Rafiza Ghazali was quoted as saying.
Malay Mail
32 minutes ago
- Malay Mail
Bursa closes at intraday high, bucks regional downtrend on 13MP boost, US trade hopes
KUALA LUMPUR, Aug 8 — Bursa Malaysia ended the week higher, closing at an intraday high, outperforming regional peers as the formal announcement of the 13th Malaysia Plan (13MP) and renewed developments in United States trade tariff policy served as dual tailwinds for market sentiment. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.87 points or 0.51 per cent to close at 1,556.98 from Thursday's close of 1,549.11. The benchmark index had opened 0.11 of a point lower at 1,549.00 and hit its lowest level of 1,546.41 during the morning session but gained momentum thereafter. However, the broader market was negative, with decliners beating gainers 541 to 448, while 494 counters were unchanged, 1,030 untraded and nine suspended. Turnover increased to 2.43 billion units worth RM2.22 billion from 2.21 billion units worth RM2.35 billion on Thursday. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI concluded the week on a firmer footing, while regional benchmarks remained subdued amid lingering macroeconomic uncertainty. 'The local index sustained ahead of the midday intermission, but the bullish momentum consolidated post-lunch, underpinned by rising probability-weighted expectations of US monetary policy easing. 'This trajectory was consistent as the confluence of domestic policy catalysts and evolving global trade dynamics support market sentiment,' he told Bernama. Among the heavyweights, Maybank lost two sen to RM9.61, while Public Bank and Tenaga Nasional gained four sen each to RM4.33 and RM13.80, CIMB rose eight sen to RM6.86, and IHH was one sen higher at RM6.96. Of the most active counters, Ekovest fell one sen to 39.5 sen, Tanco eased half-a-sen to 76.5 sen, Top Glove dipped two sen to 59.5 sen, and TWL was flat at 2.5 sen, while Pharmaniaga inched up half-a-sen to 18 sen. Across the broader market, the FBM Emas Index increased 35.25 points to 11,601.79, the FBMT 100 Index rose 39.25 points to 11,379.91, and the FBM Emas Shariah Index advanced 28.02 points to 11,634.18. The FBM ACE Index shaved 24 points to 4,606.88 while the FBM 70 Index dipped 23.44 points to 16,505.53. By sector, the Financial Services Index soared 83.36 points to 17,580.82, the Energy Index inched up 2.04 points to 736.72, and the Plantation Index climbed 77.38 points to 7,426.12, while the Industrial Products and Services Index eased 0.26 of-a-point to 157.76. The Main Market volume rose to 1.46 billion units valued at RM2.04 billion from 1.33 billion units valued at RM2.15 billion on Thursday. Warrants turnover climbed to 715.60 million units worth RM89.04 million from 620.69 million units worth RM97.15 million previously. The ACE Market volume dropped to 250.96 million units worth RM92.31 million from 258.67 million units worth RM99.50 million yesterday. Consumer products and services counters accounted for 272.11 million shares traded on the Main Market; industrial products and services (205.39 million), construction (135.62 million), technology (183 million), SPAC (nil), financial services (87.43 million), property (207.12 million), plantation (15.62 million), REITs (20.36 million), closed-end fund (2,800), energy (72.28 million), healthcare (139.91 million), telecommunications and media (32.58 million), transportation and logistics (37.11 million), utilities (51.70 million), and business trusts (2,300). — Bernama
Free Malaysia Today
an hour ago
- Free Malaysia Today
Tokyo soars on trade deal relief as Asian markets limp into weekend
The Nikkei 225 index jumped more than 2%. (AP pic) HONG KONG : Japanese stocks rallied today on a mixed day for Asian markets, fuelled by relief that Tokyo and Washington had settled a tariff issue that raised concerns about their trade deal. The news compounded optimism sparked by strong earnings from market heavyweights Sony and Softbank, which fanned a rally in the tech sector. Meanwhile, expectations that the Federal Reserve (Fed) will cut interest rates were boosted by Donald Trump's nomination of a key economic adviser to the central bank's policy committee, adding to downward pressure on the dollar. The Nikkei 225 jumped more than 2% after Japan's tariffs envoy Ryosei Akazawa told reporters that Washington is expected to revise an executive order that stacked tariffs on top of each other. It also lowered vehicle tariffs on Japanese autos, a crucial driver of the world's number-four economy. Car titan Toyota jumped almost 4% and Nissan more than 3%. Tech investment giant SoftBank rocketed more than 13% to a record after posting a quarterly profit thanks to its booming Vision Fund. And Sony piled on more than 4% – extending yesterday's 4.1% gain – after it hiked its annual profit forecasts owing to its gaming business. However, while Wellington, Taipei and Jakarta also rose, the rest of Asia struggled, with Hong Kong, Shanghai, Sydney, Seoul, Singapore and Manila all down. Investors are now keeping tabs on talks between Washington and several other trading partners following the imposition yesterday of Trump's tariffs, with India and Switzerland scrabbling for a deal. Also in view are China-US talks to extend a 90-day truce in their stand-off, with their current agreement ending on Aug 12 and dealers looking on cautiously. 'We think uncertainties in US-China trade relations remain high, and any perception of one side failing to fully uphold its promise could trigger a renewed escalation in tensions,' economists at Bank of America said. 'Moreover, as is the case with India, China could face potential penalties from crude oil imports from Russia,' they added. The US dollar held losses on Fed rate cut bets after Trump said he had tipped Stephen Miran, the chair of his Council of Economic Advisers to a governor role recently made vacant. 'He has been with me from the beginning of my second term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job,' the president wrote on his Truth Social platform. Miran shares Trump's calls for interest rate cuts and has been a critic of the central bank in the past. 'Miran has been very critical of US Fed policy and would likely advocate for cuts. 'This makes at least two rate cuts by the end of the year much more probable,' said National Australia Bank's Tapas Strickland. The greenback had already been under pressure this week following data last Friday showing US job creation cratered in May, June and July.
