KUALA LUMPUR (Jan 4): Aeon Credit Service (M) Bhd reached an out-of-court settlement with the Inland Revenue Board (IRB) today under which the unpaid taxes sought from the company have been significantly reduced.   

In a bourse filing, Aeon Credit said the amount sought from the financial services company, inclusive of penalties, has been brought down to RM10.31 million, from RM96.82 million previously.

It added that the taxman has agreed to withdraw the legal proceedings launched against the company at the High Court, while Aeon Credit has agreed to withdraw its appeal before the Court of Appeal.

The RM10.31 million which Aeon credit has agreed to pay forms the full and final tax settlement for the tax appeals for the 2010, 2011, 2012, 2013, 2014, 2015 and 2016 tax years.

“The settlement enables the company to have closure on a long outstanding matter and avoid being engaged in a prolonged litigation with uncertain outcome.

"The settlement will not materially affect the financial position of the company, and its financial performance for the year under review," Aeon Credit said in the filing.

The legal dispute between the lender and the government started in July 2019, when the latter filed a suit against the company to demand RM96.82 million in unpaid taxes and penalties from IRB.

On Dec 2, 2019, Aeon Credit said the High Court has granted a stay of proceedings against the suit until June 1, 2020 pending discussions to explore the possibility of an amicable resolution.

Shares in Aeon Credit closed 0.83% or 10 sen higher at RM12.10, valuing the company at RM3.09 billion. It saw 49,800 shares traded.

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