Titijaya unit granted leave to proceed with judicial review over RM9.6 mil tax assessment

PETALING JAYA (July 16): Titijaya Land Bhd said its wholly owned subsidiary, Shah Alam City Centre Sdn Bhd (SACC), has obtained leave from the Shah Alam High Court to proceed with a judicial review application against an additional tax assessment of RM9.596 million, inclusive of penalties, raised by the Director General of Inland Revenue.

In a Bursa Malaysia filing on Wednesday, the property developer said the High Court granted leave for judicial review on July 14 and extended an ad interim stay of the additional assessment pending the inter partes hearing of SACC's stay application, which has been fixed for Oct 1, 2026.

The additional assessment for the Year of Assessment 2024 was served on SACC on May 25, 2026, following an income tax audit by the Inland Revenue Board (IRB). According to Titijaya, the dispute relates to the taxability of statutory compensation monies received by SACC in December 2023 under the Land Acquisition Act 1960.

SACC filed a judicial review application at the Shah Alam High Court on June 17, 2026, seeking, among others, an order of certiorari to quash the Director General of Inland Revenue's decision and a stay of enforcement. It subsequently lodged an appeal against the additional assessment by filing Form Q with the IRB on June 23, 2026.

During a case management on June 23, the High Court granted an interim stay order effective until July 14. The Attorney General's Chambers informed the court that it intended to object to SACC's application for leave and was directed to file its submissions before the matter came up for hearing on July 14, when the court granted leave for the judicial review to proceed.

Titijaya said it remains committed to engaging constructively with the IRB to resolve the matter amicably and expeditiously. The board said the judicial review application would provide necessary clarity on the taxability of compensation monies, which it described as a vital point of law, as well as SACC's tax and financial position.

The company said it will make further announcements should there be any material developments relating to the matter.

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