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Duty Free latest responds on the tax case... Post Reply Rate topic
tonylim70 Veteran	02-Jul-2018 17:53        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Jialat, lose the tax case in high court, now appealing to appeal court.. 15 cents soon...   CUSTOMS MATTERS RELATING TO A SUBSIDIARY OF THE COMPANY 1. Further to the announcements previously made on 30 November 2017, the Board of Directors of Duty Free International Limited (" Company" , and together with its subsidiaries, " Group" ) wishes to provide an update on the said matter:- i) On 29 June 2018, the High Court has not granted an application for judicial review to Seruntun Maju Sdn Bhd (" SMSB" ). ii) Upon the advice of its solicitors, SMSB has filed an appeal to the Court of Appeal against the High Court&rsquo s decision of not granting an application for judicial review. iii) Simultaneously, the High Court instructed SMSB to file a formal stay application, which was subsequently filed on 2 July 2018. The stay application is made to stay the effect and enforcement of the bills of demand raised on SMSB for import and excise duties (" Bills of Demand" ). iv) In addition, SMSB will also file a Notice of Motion before the Court of Appeal to stay the effect and enforcement of the said notices of additional assessment pending the appeal before the Court of Appeal on stay. 2. The Company, after consultation with its solicitors, maintains the view that there is no legal and/or factual basis for the Customs Department to arrive at their decision to raise the said Bills of Demand. 3. The Company will make further announcement(s) if there is any material update on the above said matter. BY ORDER OF THE BOARD Lee Sze Siang Executive Director 2 July 2018
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tonylim70 Veteran	12-Jun-2018 14:38        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	haha, quote: On 30 November 2017, the Company announced that the Company&rsquo s subsidiary, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 14 November 2017 from the Royal Malaysian Customs State of Perak (&ldquo Customs&rdquo ), which SMSB received on 21 November 2017, demanding payments of customs duties, excise duties, sales tax and Goods and Services Tax (&ldquo GST&rdquo ) all totalling RM41,595,000 for the period from 15 November 2014 to 30 September 2016. ya.. my mistake.. is tens of millions every year.. but any unknown is poison for share price. As long as the tax case not definitely solved (unknown), the share price can only see 1 way down. IF they lose, they will have to declare 40Million ringgit provision which means they will make a loss in that quarter.. usually when a company annouce a huge loss (40M ringgit), share price will tank. Ya, the ones who dare to take the risk will be rewarded handsomely but also will lose until pant drops :)   alexchew      ( Date: 12-Jun-2018 13:48) Posted: hahaa... hundreds of millions? A bit too kua zhang right? Now is the era of compliance catching up with business. Many business involve in big tax cases... Once resolved, and comes to an agreement, the past mistakes will be written off and things start afresh. In a way, its good that it comes earlier than later.... But, tony is right, that, the next 2 months might see dips.. For new investors, wait for coast clear... But, smart money always move ahead of others... You won' t know the rebound is when or will it ever comes... tonylim70      ( Date: 12-Jun-2018 11:57) Posted: If they dun adhere to the customs' instructions then yes every year pay extra almost hundred of million of tax. Depending on the next step from the tax authority. If this is just a one off then maybe after half a year or so, things will return to normal. BUT mahathir now looking for $$$ to repay the country' s HUGE debt, so i wonder will the tax authority rest the case so easily??? For shareholders, lets hope this is just a one-off thing. For potential investors, I think better wait .. the share price will dip to 16-18 cents when buy back stops during the close period.
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alexchew Master	12-Jun-2018 13:48        alexchew About Contact  Quote this Post!
x 0   x 0  Alert Admin	hahaa... hundreds of millions? A bit too kua zhang right? Now is the era of compliance catching up with business. Many business involve in big tax cases... Once resolved, and comes to an agreement, the past mistakes will be written off and things start afresh. In a way, its good that it comes earlier than later.... But, tony is right, that, the next 2 months might see dips.. For new investors, wait for coast clear... But, smart money always move ahead of others... You won' t know the rebound is when or will it ever comes... tonylim70      ( Date: 12-Jun-2018 11:57) Posted: If they dun adhere to the customs' instructions then yes every year pay extra almost hundred of million of tax. Depending on the next step from the tax authority. If this is just a one off then maybe after half a year or so, things will return to normal. BUT mahathir now looking for $$$ to repay the country' s HUGE debt, so i wonder will the tax authority rest the case so easily??? For shareholders, lets hope this is just a one-off thing. For potential investors, I think better wait .. the share price will dip to 16-18 cents when buy back stops during the close period.   investshare      ( Date: 12-Jun-2018 10:48) Posted: Does it mean moving forward, they need to pay this tax every year? How can it be good for long term
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tonylim70 Veteran	12-Jun-2018 11:57        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	If they dun adhere to the customs' instructions then yes every year pay extra almost hundred of million of tax. Depending on the next step from the tax authority. If this is just a one off then maybe after half a year or so, things will return to normal. BUT mahathir now looking for $$$ to repay the country' s HUGE debt, so i wonder will the tax authority rest the case so easily??? For shareholders, lets hope this is just a one-off thing. For potential investors, I think better wait .. the share price will dip to 16-18 cents when buy back stops during the close period.   investshare      ( Date: 12-Jun-2018 10:48) Posted: Does it mean moving forward, they need to pay this tax every year? How can it be good for long term? tonylim70      ( Date: 12-Jun-2018 10:02) Posted: Good for long term but bad for short term, BB sure use the lost of tax case to push the share price down. The share price would have been 16-18 cents if not for the buyback... but they are going to stop the buyback due to they annoucing the financial report next month. So be careful... share price will trade around 15-18 cents short term. But as u said, long term will be good IF tax authority dun go after the rest of their outlet
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alexchew Master	12-Jun-2018 10:51        alexchew About Contact  Quote this Post!
x 0   x 0  Alert Admin	will be good for the biz if there is certainty. They can do price adjustments or simply hit their margins...  investshare      ( Date: 12-Jun-2018 10:48) Posted: Does it mean moving forward, they need to pay this tax every year? How can it be good for long term? tonylim70      ( Date: 12-Jun-2018 10:02) Posted: Good for long term but bad for short term, BB sure use the lost of tax case to push the share price down. The share price would have been 16-18 cents if not for the buyback... but they are going to stop the buyback due to they annoucing the financial report next month. So be careful... share price will trade around 15-18 cents short term. But as u said, long term will be good IF tax authority dun go after the rest of their outlet
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investshare Supreme	12-Jun-2018 10:48        investshare About Contact  Quote this Post!
x 0   x 0  Alert Admin	Does it mean moving forward, they need to pay this tax every year? How can it be good for long term? tonylim70      ( Date: 12-Jun-2018 10:02) Posted: Good for long term but bad for short term, BB sure use the lost of tax case to push the share price down. The share price would have been 16-18 cents if not for the buyback... but they are going to stop the buyback due to they annoucing the financial report next month. So be careful... share price will trade around 15-18 cents short term. But as u said, long term will be good IF tax authority dun go after the rest of their outlets alexchew      ( Date: 12-Jun-2018 09:59) Posted: good that they decide to pay.. faster close case and dont leave pending. Settle case with tax authorities always have a discount
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tonylim70 Veteran	12-Jun-2018 10:02        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Good for long term but bad for short term, BB sure use the lost of tax case to push the share price down. The share price would have been 16-18 cents if not for the buyback... but they are going to stop the buyback due to they annoucing the financial report next month. So be careful... share price will trade around 15-18 cents short term. But as u said, long term will be good IF tax authority dun go after the rest of their outlets alexchew      ( Date: 12-Jun-2018 09:59) Posted: good that they decide to pay.. faster close case and dont leave pending. Settle case with tax authorities always have a discount. tonylim70      ( Date: 12-Jun-2018 09:50) Posted: They going to annouce financial result soon (in July), they have to stop buy back during the close period (1 month before financial annoucement). Share price potentially falling back below 20 cents when buyback stops..
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alexchew Master	12-Jun-2018 09:59        alexchew About Contact  Quote this Post!
x 0   x 0  Alert Admin	good that they decide to pay.. faster close case and dont leave pending. Settle case with tax authorities always have a discount. tonylim70      ( Date: 12-Jun-2018 09:50) Posted: They going to annouce financial result soon (in July), they have to stop buy back during the close period (1 month before financial annoucement). Share price potentially falling back below 20 cents when buyback stops.. tonylim70      ( Date: 11-Jun-2018 18:16) Posted: Just out in their annual report. Confident tone seems to change liao.. u  can DYODD.. 1) They had paid RM476,000 out of the RM1,225,000 demand by the Customs for the GST for the tax demanded ==> Isn' t this " admitting" defeat? I thought they always insists they are right and dun have to pay the tax demanded? 2) Now they saying the tax demand is " POSSIBLE" ... seems to admit possible defeat. 3) How come they never update the result of the tax case that was on 25 May? Goods and Services Tax (&ldquo GST&rdquo ) receivable (i) During the financial year, a subsidiary of the Company, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 2 November 2017 from the Royal Malaysian Customs of Perak Darul Ridzuan (&ldquo Customs&rdquo ) which demanded payments of GST amounting to RM1,225,000 for the period from 1 April 2015 to 31 December 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. On 27 November 2017, SMSB had appealed to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director- General of Customs. The Company, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. The solicitors of SMSB are taking the necessary defence actions on its behalf. As at 28 February 2018, SMSB had paid RM476,000 out of the RM1,225,000 demand by the Customs and this is included in GST receivable. (ii) Also, included in GST receivable is RM895,000, relating to the GST paid for the Bills of Demand which were raised by the Customs Department as disclosed in Note 27.   Bills of Demand in respect of import duties, excise duties, sales tax and GST On 30 November 2017, the Company announced that the Company&rsquo s subsidiary, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 14 November 2017 from the Royal Malaysian Customs State of Perak (&ldquo Customs&rdquo ), which SMSB received on 21 November 2017, demanding payments of customs duties, excise duties, sales tax and Goods and Services Tax (&ldquo GST&rdquo ) all totalling RM41,595,000 for the period from 15 November 2014 to 30 September 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. The Group, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. This is especially so since SMSB&rsquo s duty free shop is located after the last customs station en-route out of Malaysia and before the first customs station en-route into Malaysia, where no duties are payable. The solicitors of SMSB are taking the necessary defence actions on its behalf. On 29 November 2017, the High Court granted leave to SMSB&rsquo s application for judicial review, as well as an interim stay of the enforcement of the Bills of Demand until the disposal of the inter partes stay hearing under the Customs Act 1967 and Excise Act, 1976. The High Court has on 4 January 2018 fixed the case for hearing on 12 April 2018 and subsequently postponed to 17 April 2018. During the hearing on 17 April 2018, SMSB argued that the Bills of Demand are illegal and are raised beyond the scope of the Customs&rsquo jurisdiction. This is on the premise that the alleged conditions were not attached to the duty free shop licences issued to SMSB, as required under Section 65D(2) of the Customs Act 1967. The High Court subsequently fixed for decision of the matter on 25 May 2018. In addition, the High Court also granted interim stay of enforcement of the Bills of Demand until the date of decision. On 12 December 2017, SMSB had also appealed to the Director-General of Customs in respect of the sales tax pursuant to Section 68 of the Sales Tax Act and had submitted an application to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director-General of Customs. The Board, having obtained advice from its solicitor, is of the opinion that the demand payment from the Customs is possible, but not probable, that the Customs will succeed and accordingly no provision for any liability has been made in the financial statements.
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tonylim70 Veteran	12-Jun-2018 09:50        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	They going to annouce financial result soon (in July), they have to stop buy back during the close period (1 month before financial annoucement). Share price potentially falling back below 20 cents when buyback stops.. tonylim70      ( Date: 11-Jun-2018 18:16) Posted: Just out in their annual report. Confident tone seems to change liao.. u  can DYODD.. 1) They had paid RM476,000 out of the RM1,225,000 demand by the Customs for the GST for the tax demanded ==> Isn' t this " admitting" defeat? I thought they always insists they are right and dun have to pay the tax demanded? 2) Now they saying the tax demand is " POSSIBLE" ... seems to admit possible defeat. 3) How come they never update the result of the tax case that was on 25 May? Goods and Services Tax (&ldquo GST&rdquo ) receivable (i) During the financial year, a subsidiary of the Company, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 2 November 2017 from the Royal Malaysian Customs of Perak Darul Ridzuan (&ldquo Customs&rdquo ) which demanded payments of GST amounting to RM1,225,000 for the period from 1 April 2015 to 31 December 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. On 27 November 2017, SMSB had appealed to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director- General of Customs. The Company, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. The solicitors of SMSB are taking the necessary defence actions on its behalf. As at 28 February 2018, SMSB had paid RM476,000 out of the RM1,225,000 demand by the Customs and this is included in GST receivable. (ii) Also, included in GST receivable is RM895,000, relating to the GST paid for the Bills of Demand which were raised by the Customs Department as disclosed in Note 27.   Bills of Demand in respect of import duties, excise duties, sales tax and GST On 30 November 2017, the Company announced that the Company&rsquo s subsidiary, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 14 November 2017 from the Royal Malaysian Customs State of Perak (&ldquo Customs&rdquo ), which SMSB received on 21 November 2017, demanding payments of customs duties, excise duties, sales tax and Goods and Services Tax (&ldquo GST&rdquo ) all totalling RM41,595,000 for the period from 15 November 2014 to 30 September 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. The Group, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. This is especially so since SMSB&rsquo s duty free shop is located after the last customs station en-route out of Malaysia and before the first customs station en-route into Malaysia, where no duties are payable. The solicitors of SMSB are taking the necessary defence actions on its behalf. On 29 November 2017, the High Court granted leave to SMSB&rsquo s application for judicial review, as well as an interim stay of the enforcement of the Bills of Demand until the disposal of the inter partes stay hearing under the Customs Act 1967 and Excise Act, 1976. The High Court has on 4 January 2018 fixed the case for hearing on 12 April 2018 and subsequently postponed to 17 April 2018. During the hearing on 17 April 2018, SMSB argued that the Bills of Demand are illegal and are raised beyond the scope of the Customs&rsquo jurisdiction. This is on the premise that the alleged conditions were not attached to the duty free shop licences issued to SMSB, as required under Section 65D(2) of the Customs Act 1967. The High Court subsequently fixed for decision of the matter on 25 May 2018. In addition, the High Court also granted interim stay of enforcement of the Bills of Demand until the date of decision. On 12 December 2017, SMSB had also appealed to the Director-General of Customs in respect of the sales tax pursuant to Section 68 of the Sales Tax Act and had submitted an application to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director-General of Customs. The Board, having obtained advice from its solicitor, is of the opinion that the demand payment from the Customs is possible, but not probable, that the Customs will succeed and accordingly no provision for any liability has been made in the financial statements.
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tonylim70 Veteran	11-Jun-2018 18:16        tonylim70 About Contact  Quote this Post!
x 0   x 1  Alert Admin	Just out in their annual report. Confident tone seems to change liao.. u  can DYODD.. 1) They had paid RM476,000 out of the RM1,225,000 demand by the Customs for the GST for the tax demanded ==> Isn' t this " admitting" defeat? I thought they always insists they are right and dun have to pay the tax demanded? 2) Now they saying the tax demand is " POSSIBLE" ... seems to admit possible defeat. 3) How come they never update the result of the tax case that was on 25 May? Goods and Services Tax (&ldquo GST&rdquo ) receivable (i) During the financial year, a subsidiary of the Company, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 2 November 2017 from the Royal Malaysian Customs of Perak Darul Ridzuan (&ldquo Customs&rdquo ) which demanded payments of GST amounting to RM1,225,000 for the period from 1 April 2015 to 31 December 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. On 27 November 2017, SMSB had appealed to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director- General of Customs. The Company, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. The solicitors of SMSB are taking the necessary defence actions on its behalf. As at 28 February 2018, SMSB had paid RM476,000 out of the RM1,225,000 demand by the Customs and this is included in GST receivable. (ii) Also, included in GST receivable is RM895,000, relating to the GST paid for the Bills of Demand which were raised by the Customs Department as disclosed in Note 27.   Bills of Demand in respect of import duties, excise duties, sales tax and GST On 30 November 2017, the Company announced that the Company&rsquo s subsidiary, Seruntun Maju Sdn. Bhd. (&ldquo SMSB&rdquo ) had received Bills of Demand dated 14 November 2017 from the Royal Malaysian Customs State of Perak (&ldquo Customs&rdquo ), which SMSB received on 21 November 2017, demanding payments of customs duties, excise duties, sales tax and Goods and Services Tax (&ldquo GST&rdquo ) all totalling RM41,595,000 for the period from 15 November 2014 to 30 September 2016. The said Bills of Demand were raised by the Customs who alleged that SMSB did not comply with certain conditions of a duty-free shop located at the border. The Group, after consultation with its solicitors, strongly believes that there is no legal and/or factual basis for the Customs to arrive at their decision to raise the said Bills of Demand. This is especially so since SMSB&rsquo s duty free shop is located after the last customs station en-route out of Malaysia and before the first customs station en-route into Malaysia, where no duties are payable. The solicitors of SMSB are taking the necessary defence actions on its behalf. On 29 November 2017, the High Court granted leave to SMSB&rsquo s application for judicial review, as well as an interim stay of the enforcement of the Bills of Demand until the disposal of the inter partes stay hearing under the Customs Act 1967 and Excise Act, 1976. The High Court has on 4 January 2018 fixed the case for hearing on 12 April 2018 and subsequently postponed to 17 April 2018. During the hearing on 17 April 2018, SMSB argued that the Bills of Demand are illegal and are raised beyond the scope of the Customs&rsquo jurisdiction. This is on the premise that the alleged conditions were not attached to the duty free shop licences issued to SMSB, as required under Section 65D(2) of the Customs Act 1967. The High Court subsequently fixed for decision of the matter on 25 May 2018. In addition, the High Court also granted interim stay of enforcement of the Bills of Demand until the date of decision. On 12 December 2017, SMSB had also appealed to the Director-General of Customs in respect of the sales tax pursuant to Section 68 of the Sales Tax Act and had submitted an application to the Director-General of Customs in respect of GST pursuant to Section 124 of the GST Act. To-date, the matter is still pending a decision from the Director-General of Customs. The Board, having obtained advice from its solicitor, is of the opinion that the demand payment from the Customs is possible, but not probable, that the Customs will succeed and accordingly no provision for any liability has been made in the financial statements.
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