KUALA LUMPUR: Comfort Gloves Bhd has reached an agreement with the Inland Revenue Board (IRB) to settle a two-year tax dispute involving its subsidiaries for RM8.3 million, a fraction of the original amount.
In a filing with Bursa Malaysia, the glove manufacturer said its subsidiaries, Comfort Rubber Gloves Industries Sdn Bhd (CRGI) and Gallant Quality Sdn Bhd (GQ), reached the agreement on Oct 22, subject to the finalisation of settlement documentation.
"The settlement is not expected to have any material financial impact on the group, as the settlement amount has been provided for in CRGI and GQ's financial statements," it said.
Upon finalisation of the documentation, the subsidiaries will discontinue all legal proceedings over the disputed tax assessments, bringing the matter to a full and final resolution.
The dispute began in April 2024 when both subsidiaries initiated legal proceedings against the IRB over additional tax assessments totalling RM99.3 million.
The assessments arose from the IRB's reassessment of the tax basis period following Comfort Gloves' change of financial year-end to Dec 31, 2021, despite the company having previously obtained the necessary approval.
At 2.40pm, Comfort Gloves' shares were up half a sen, or 3.03 per cent, at 17 sen, valuing the company at RM99.1 million.
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