Tan Chong’s RM180 million Customs bill to be settled out of court

Tan Chong’s RM180 million Customs bill to be settled out of court

Public listed automative giant will pay a reduced bill and compound of around RM109 million.

Tan Chong Motor Assemblies Sdn Bhd was slapped with a RM180 million bill for excise duties for the period between Nov 1, 2016, to Oct 31, 2019. (Tan Chong pic)
PETALING JAYA:
Automotive giant Tan Chong Motor Holdings Bhd will be settling its RM180 million Customs Department bill out of court.

It was previously reported that the company’s subsidiary, Tan Chong Motor Assemblies Sdn Bhd (TCMA) was slapped with a RM180 million bill for excise duties for the period between Nov 1, 2016, to Oct 31, 2019.

Subsequently, TCMA applied to the High Court for a judicial review to challenge the issuance of the bills and was later granted an interim stay of proceedings.

In a filing with Bursa Malaysia today, Tan Chong said that TCMA and the Customs Department have agreed to an out of court settlement by way of reduced bills and a compound amounting to around RM109 million.

This is subject to the finalisation of the terms of the consent order in respect to the settlement.

“The company is pleased to announce that this matter has been resolved amicably and expeditiously as this will enable TCMA to focus on its core business instead of being entangled in a protracted litigation.”

TCMA has assembly plants in Kuala Lumpur, Selangor, Da Nang in Vietnam, and Yangon in Myanmar.

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