Petronas Wins RM15.672 Million Tax Refund

The Malaysia===Court of Appeal of Malaysia has instructed the Malaysia===Director-General of Inland Revenue (DGIR) to refund RM15.672 million to Petroliam Nasional Berhad===Petronas within six months. This decision overturns previous rulings by the Malaysia===High court (Malaysia) and the Malaysia===Special Commissioners of Income Tax, which had disallowed tax deductions for Petroliam Nasional Berhad===Petronas's overseas country-office related expenses in Sudan and Vietnam for the 2010 assessment year. The Malaysia===Court of Appeal of Malaysia found that the lower courts had erred in law by not recognizing these expenses as deductible and by not determining if alleged negligence by Petroliam Nasional Berhad===Petronas caused a tax loss. This ruling is a significant win for Petroliam Nasional Berhad===Petronas, affirming its right to deduct expenses incurred outside Malaysia under the Petroleum (Income Tax) Act 1967.