Citing TNB’s 2024 annual report, The Edge reported today that the Inland Revenue Board (LHDN) issued the company RM9.25 billion in additional tax assessments.

However, RM2.44 billion in penalties was waived through settlements.

“TNB paid RM1.76 billion in December 2020, leaving an estimated RM5.05 billion still outstanding,” the report by the financial portal added.

Yesterday, it was reported that TNB’s shares plunged a day after the Federal Court overturned a ruling in the largest corporate tax dispute in the country’s history, resulting in losses of over RM3 billion in its market capitalisation.

Its shares fell as much as 74 sen, or over 5%, to its lowest level since June 3, with the counter closing at RM14.02.

On Wednesday the apex court overturned a Court of Appeal ruling that found the national utility company to be in the business of manufacturing electricity.

It said TNB should actually have been considered a utility company under Schedule 7B of the Income Tax Act 1967 (ITA).

The dispute arose when LHDN disallowed TNB’s claim under Schedule 7A of the ITA on the basis that the generation, distribution and transmission of electricity did not constitute manufacturing of electricity.

TNB had also argued that it was only a service provider.

In 2022, the High Court allowed TNB’s judicial review application to set aside LHDN’s RM1.8 billion tax assessment for the year 2018.

Two years later, the Court of Appeal upheld the High Court’s ruling. TNB has already paid the sum.