KUALA LUMPUR (July 11): Astro Malaysia Holdings Bhd (KL:ASTRO) has been served with an additional tax bill of RM734.88 million, for the years of assessment of 2019 to 2023, including penalties.

The additional assessment is about half of Astro’s market capitalisation of RM1.59 billion.

Notices for the additional tax have been received by its wholly-owned Astro Shaw Sdn Bhd and MEASAT Broadcast Network Systems Sdn Bhd on Tuesday, it said. Astro Shaw's notice showed an additional tax of RM22.01 million while MBNS has to pay RM712.87 million.

The notices for additional assessment were issued as production costs incurred during the said years of assessment were disallowed for deduction, Astro informed Bursa Malaysia on Thursday.

Astro said ASSB and MBNS have 30 days from the date of the notices to appeal against the IRB’s decision.

“Based on legal advice obtained, ASSB and MBNS are of the view that there are fair and reasonable grounds to defend against the notices. 

“Therefore, both ASSB and MBNS intend to appeal and if required, initiate legal proceedings to challenge the basis and validity of the notices raised by the IRB,” Astro added. 

At Thursday’s closing bell, Astro’s share price rose half a sen or 1.64% to 31 sen, valuing it at RM1.59 billion. The counter has fallen over 18% since the start of this year.