YNH Property resolves RM7.21m tax dispute as IRB withdraws winding-up petition against unit
YNH Property Bhd said the Inland Revenue Board will withdraw a winding-up petition against its subsidiary YNH Construction Sdn Bhd after a tax settlement. The developer continues asset-monetisation efforts including a proposed RM455m disposal of freehold land along Jalan Sultan Ismail.
PETALING JAYA (Oct 28): YNH Property Bhd said the Inland Revenue Board (IRB) will withdraw a winding-up petition against its wholly-owned subsidiary YNH Construction Sdn Bhd following a tax settlement, as the developer continues its capital-management and asset-monetisation efforts.
In a Bursa Malaysia filing on Tuesday (Oct 27), YNH said the tax authority had confirmed in a letter dated Oct 23 that the petition would be withdrawn. The board described the settlement as a positive development for the group.
The petition, dated March 30 and served on April 14, concerned outstanding tax liabilities of RM7.21 million. YNH previously disclosed that YNH Construction was not a major subsidiary under Bursa Malaysia's Main Market Listing Requirements. Its investment in the subsidiary stood at RM2.5 million as at June 30, 2025.
Under a revised settlement arrangement approved by the IRB on July 23, YNH Construction was scheduled to settle RM5.16 million in outstanding tax by Sept 10. The authority also agreed to waive RM1.71 million in tax increases imposed under Section 103 of the Income Tax Act 1967, subject to full compliance with the arrangement. Tuesday's announcement did not disclose the final amount paid or state whether the petition had formally been withdrawn.
No winding-up order was made at the High Court hearing on July 16. The court had fixed a further hearing for Oct 27 pending completion of the settlement arrangement.
In its accompanying statement, YNH said it remained focused on Solasta Dutamas in Kuala Lumpur and its township projects in Seri Manjung, Perak, alongside capital management and asset monetisation initiatives. In July, the group announced that it had exercised its contractual right to defer RM34.41 million in coupon payments and accumulated coupon obligations on two tranches of perpetual securities. YNH said the deferment would preserve cash for ongoing developments while awaiting completion of a proposed land disposal.
The group said at the time that it intended to use proceeds from the proposed disposal of freehold land along Jalan Sultan Ismail, Kuala Lumpur, to redeem the outstanding perpetual securities and settle the related coupon obligations. Under its July 8 Bursa Malaysia announcement, the proposed RM455 million sale to Chin Hin Property (JSI) Sdn Bhd comprises RM409.475 million in cash, RM45.5 million in redeemable preference shares and RM25,000 in ordinary shares in the purchaser.
The tax settlement comes against weaker financial results. For the financial year ended June 30, 2026, YNH reported an unaudited loss attributable to ordinary equity holders of RM142.21 million, compared with RM108.10 million a year earlier. Revenue fell to RM112.59 million from RM391.58 million.
