The good news for Westports came after the finance ministry (MoF) reviewed Westports’ appeal letter dated Dec 24, 2021 relating to tax imposed on annual lease payments made by WMSB to Port Klang Authority (PKA).

“The payments (to PKA) are now treated as allowable expenses. The review involved the years of assessment 2013 to 2019, and the disputed assessments amount to RM358,908,680,” it said in a filing with Bursa Malaysia today.

“The notices of additional assessment involving taxable amounts and penalties amounting to RM143,234,882 are to be set aside, pursuant to Section 127(3) of the Income Tax Act 1967 via the letter from MoF dated April 14, 2023.”

In October 2020, Westports announced the Inland Revenue Board (LHDN) had slapped WMSB with an additional tax assessment and penalties which amounted to RM120.58 million at that time.

The additional assessment involved annual lease payments made to PKA totalling RM299.9 million for the years of assessment from 2013 to 2018, as well as a deferred revenue of RM7.97 million for the year of assessment 2018.

Westports’ net profit for FY2022 fell 13.44% to RM699.58 million from RM808.22 million the previous year on higher fuel cost, lower sundry income, and the one-off prosperity tax.

For its fourth quarter ended Dec 31 (Q4 FY2022), its net profit rose 5.46% to RM235.04 million from RM222.88 million a year ago due to investment tax allowance.

Revenue for the year was slightly higher at RM2.07 billion versus RM2.02 billion previously, while Q4 revenue rose 3.42% to RM521.14 million from RM503.9 million a year earlier.

Westports share price fell five sen or 1.38% to RM3.58 sen today, giving it a market capitalisation of RM12.21 billion.