Federal Court: TNB is a Utility, Not a Manufacturer, and Ineligible for Reinvestment Tax Allowance

The Federal Court has ruled that Tenaga Nasional Bhd (TNB) is a utility company, not a manufacturing business, under the Income Tax Act 1967. This landmark decision means TNB is not eligible for the reinvestment allowance it claimed, which is intended for the manufacturing sector. The apex court clarified that TNB should have applied for an investment allowance under the utility category. The ruling concludes a dispute with the Inland Revenue Board (IRB) over a notice of additional assessment amounting to RM1.25 billion, overturning previous lower court decisions in favor of TNB.

Kindly subscribe to our newsletter for extensive news and information, and enjoy lifetime free business advisory. Schedule an appointment with our consultant today.