KUALA LUMPUR (Nov 5): YTL Power International Bhd (KL:YTLPOWR) has won its appeal against a capital gains tax assessment on its A$1.03 billion (RM2.80 billion) disposal of transmission system operator, ElectraNet Pty Ltd, back in 2022.

The original tax assessment, which YTL Power had been challenging, would have cost the group A$284.32 million, according to the group's previous public circulars.

Australia’s Federal Court, in a ruling on Oct 30, ruled that the disposal was not subject to capital gains tax as it determined that ElectraNet’s transmission network lease assets were not “taxable Australian real property”, according to Accounting Times in a report on Wednesday.

Australia’s Commissioner of Taxation may still appeal against the decision, the news portal also reported.

The Edge has reached out to YTL Power for comment.  

YTL Power's wholly owned YTL Power Investments Ltd held a 33.5% stake in ElectraNet, which it sold to Australian Utilities Pty Ltd in 2022. The disposal saw YTL Power book a disposal gain of RM1.27 billion in FY2022, according to the group's Annual Report 2023.

YTL Power Investment had first appealed against the assessment with Australia’s Commissioner of Taxation. But its appeal was dismissed, which resulted in the matter being brought to court.

YTL Power shares ended two sen or 0.51% lower at RM3.88, valuing the group at RM33.68 billion.