Sime Darby subsidiary faces RM150.18 million tax bill, plans appeal
The assessments include penalties and concern interest income from treasury activities for the 2017 to 2023 assessment years.
Sime Darby Bhd said its wholly owned unit, Sime Darby Holdings Bhd (SDHB), intends to contest RM150.18 million in tax assessments from the Inland Revenue Board (IRB) through an appeal and legal proceedings.
In its Oct 13 bourse filing, the group said IRB had treated interest earned through SDHB’s treasury activities as taxable under Section 4(c) of the Income Tax Act 1967. The assessments cover 2017 to 2023 and include penalties.
The notices reached SDHB on Sept 30, with 30 days allowed for an appeal. Sime Darby said consultations with tax and legal advisers had led it to believe there were valid grounds for a challenge. It would disclose any material developments.
Separately, Sime Darby’s net profit for 4QFY2026, ended June 30, 2026, dropped 57.8% to RM322 million, compared with RM763 million a year earlier. Revenue declined to RM16.71 billion from RM17.76 billion, a fall of 5.9%.
Impairments and provisions weighed on quarterly earnings, alongside the absence of a Malaysia Vision Valley (MVV) land-disposal gain. The year-earlier quarter had included RM443 million from that disposal. FY2026 net profit fell 14.5% to RM1.76 billion from RM2.06 billion in FY2025.
The shares finished unchanged at RM2.46, valuing Sime Darby at RM16.77 billion. The stock’s year-to-date gain stood at 20%.
