GST refund: Boustead Plant sues S P Setia unit for RM37m

KUALA LUMPUR (Jan 9): Boustead Plantations Bhd has filed a suit claiming RM37.21 million from a unit of S P Setia Bhd in relation to a refund under the goods and services tax (GST).

In a filing with Bursa Malaysia yesterday, Boustead Plantations said, CIMB Islamic Trustees Bhd, acting as the group’s trustee, had filed a claim against Setia Fontaines Sdn Bhd for alleged breach of a sales and purchase agreement.

Boustead Plantations claimed that RM37.21 million of the GST was chargeable on the land it sold to Setia Fontaines on Dec 22, 2016.

As such, Boustead Plantations is claiming damages of the same amount to be paid to it as well as 8% interest per annum.

“In consultation with our solicitors, the board is of the view that BPlant (Boustead Plantations) has a good case in this suit and is therefore positive of the outcome of this litigation,” the group said.

The matter has been fixed for case management on Jan 28, it added.
Shares in Boustead Plantations rose 2 sen, or 2.31%, to close at 88.5 sen yesterday, resulting in a RM1.98 billion market capitalisation.

This article first appeared in The Edge Financial Daily, on Jan 9, 2019.

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