KUALA LUMPUR (Jan 10): Kumpulan Perangsang Selangor Bhd (KL:KPS) on Friday said its subsidiary's appeal to the Inland Revenue Board (IRB) against the RM7.89 million capital gains tax and penalty that was imposed on the company in November last year was accepted.

In a filing on Friday, KPS said the appeal was filed by its wholly owned Bold Approach Sdn Bhd on Dec 17 last year.

"Based on their review, the IRB has issued the Reduce Assessment Notice dated Jan 10, 2025 to cancel the amount raised in capital gains tax assessment dated Nov 29, 2024 of RM7.89 million," said KPS.

“With the above development, the capital gains tax matter is considered resolved, and no further announcement is required on the said matter,” it added.

KPS previously announced that IRB had imposed a 2% capital gains tax on the proceeds of its divestment of Kaiserkorp Corp Sdn Bhd.

KPS said the tax was calculated based on a gross consideration of RM271.95 million, which resulted in a tax of RM5.44 million. A 45% penalty for non-filing was also applied, amounting to an addition of RM2.45 million.

KPS completed the divestment of a 50% stake in Kaiserkorp to AI Dream (HK) Ltd in March last year for a cash consideration of US$57.46 million (RM265.48 million), reducing its 60% stake in Kaiserkorp to 10%.

Kaiserkorp wholly owns King Koil Licensing Co Inc, the US-based owner of the King Koil mattress brand. KPS acquired the 60% stake in Kaiserkorp for US$28.8 million (or RM116.66 million) back in May 2016.

KPS’ single largest shareholder is the Selangor state-owned Darul Ehsan Investment Group Bhd, with a 57.88% stake, while Perbadanan Kemajuan Negeri Selangor (PKNS) holds 5.52%.

KPS’ share price closed down one sen or 1.49% at 66 sen on Friday, giving the group a market capitalisation of RM352.1 million.