MyEG Faces RM353 Million Tax Bill and Government Lawsuit Over 2021–2023 Assessments

My EG Sdn Bhd (MyEG), a wholly owned subsidiary of Zetrix AI Bhd, has received an additional income tax assessment of RM353.13 million from the Inland Revenue Board (LHDN), with the Malaysian government also filing a civil suit against the company. In a Bursa Malaysia filing on October 29, Zetrix AI said the assessment was issued on October 28 and covers the years of assessment 2021, 2022 and 2023, including penalties. The development adds to mounting legal and financial pressure on the digital services provider.

Transfer Pricing Dispute Makes Up Most of RM353 Million Tax Bill

The assessment comprises RM333.11 million relating to transfer pricing and RM20.02 million in deemed interest. Transfer pricing concerns how transactions between related entities are priced for tax purposes. MyEG has filed an appeal with the Special Commissioners of Income Tax to challenge the assessment, while saying it remains confident in its position and intends to protect its interests through the appropriate legal channels.

Tax Case Follows Separate RM314 Million Government Revenue Dispute

The lawsuit comes amid a separate dispute involving RM314 million in government revenue collected for the Road Transport Department that was allegedly not remitted within the required period. MyEG and Zetrix AI’s JPJ-related collection services were suspended on October 5. The company says it is seeking an amicable resolution with LHDN while preparing to defend its position if necessary. The tax assessment and civil proceedings remain matters to be resolved through the relevant legal processes.

MyEG is challenging a RM353.13 million tax assessment while facing a government civil suit over the disputed tax liabilities.

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