If you’re a Malaysian, you’ve certainly grown up watching TV programmes on Astro, where we would look forward to catching our favourite shows during the weekends and stay glued to the TV for hours.
However, it seems that the streaming provider is facing huge financial challenges, as seen in a recent tax bill issued by the Inland Revenue Board (LHDN) which amounted to millions in Ringgit.
Astro issued RM734mil tax bill by LHDN
As reported by NST’s Business Times, Astro Malaysia Holdings Bhd was handed an additional tax bill amounting to a whopping RM734.88 million for the years of assessment of 2019 to 2023 by LHDN.
Based on a filing made to Bursa Malaysia by Astro, the additional tax was levied on two of Astro’s subsidiaries, namely Astro Shaw Sdn Bhd and Measat Broadcast Network Systems Sdn Bhd.
The additional tax amount issued to Astro Shaw was RM22.01 million, while Measat Broadcast Network was billed RM712.87 million.
Business Times reported that the notices were issued as the production costs incurred during the years of assessment were not eligible for deduction.Â
And it seemed that the tax bill has had a negative impact on Astro’s shares, where its stock plunged by 10%, making it the lowest record ever to be experienced by the company, reported The Edge Malaysia.
Plans to appeal
Both Astro Shaw and Measat Broadcast Network now have 30 days to file an appeal against the additional tax bill, a move that the company revealed it’s planning to do so.
Based on legal advice obtained, Astro Shaw and Measat Broadcast Network are of the view that there are fair and reasonable grounds to defend against the Notices.Â
“Therefore, both Astro Shaw and Measat Broadcast Network intend to appeal and if required, initiate legal proceedings to challenge the basis and validity of the notices raised by the LHDN,” it said as quoted by the Business Times.
In May of this year, LHDN was ordered to refund a company in Penang RM286mil over an erroneous tax bill:
