The Inland Revenue Board (IRB) prefers "consultation" in its pursuit of RM330 million in back taxes said to be owed by Kuala Dimensi Sdn Bhd (KDSB), the company in the centre of the multi-billion ringgit Port Klang Free Zone (PKFZ) scandal.

NONE The board's chief executive officer Hasmah Abdullah ( right ) said IRB did not want to take a confrontational approach in the matter and that it hoped to come to a "win-win" solution.

"We always want to think positively. We would like to work out a win-win situation, especially if they have basis (to dispute the amount)," she said when contacted today.

Deputy Finance Minister Awang Adek Husin told Parliament on Wednesday that the IRB was taking the "necessary action" under available legal provisions to recover the contentious amount.

Replying to points raised in Petaling Jaya Utara MP Tony Pua's adjournment speech, Awang Adek said because KDSB had disputed the amount, the IRB would engage the company in direct negotiations.

Hasmah explained that it was standard practice for the IRB to first call for consultation with alleged tax defaulters.

Company has the right of appeal

"Since KDSB disputed the amount, we may have to call it to look at whether the company can show evidence (to back its claim). They have the right of appeal, but if there is a case (of tax evasion) then we have to consider it further," she said.

Hasmah declined to elaborate on the action IRB would take if the consultation failed, saying she could not reveal much information about on-going cases.

kuala dimensi kdsb pc on pkfz report 290509 faizal abdullah 02 KDSB chief executive officer Faizal Abdullah ( right ) acknowledged that the company's tax agents have been "communicating" with the IRB since the board launched its investigations into alleged under-reporting by KDSB in 2007.

He said the company has been providing whatever information and documents IRB requested, but noted that the two parties were yet to meet "physically" to discuss the claim.

Faizal reiterated that the company did not under-report its earnings, as alleged by the IRB. KDSB's tax agents, auditors and lawyers have confirmed that the company is "not taxable" for the amount, he added.

'KDSB will not back down from its position'

"This is all because of the PKFZ. People want to dig here, they want to dig that... everyone wants to be seen as having done their job. They have nothing to lose, but we have suffered a lot," he said when contacted.

He maintained that the company would not back down from its position, and challenged the IRB to file a civil suit against KDSB if it thought there was a case.

"Anyone can say anything, but like I said before, this is absurd and it doesn't make sense. This country has laws... if they have an issue (with KDSB) then let's meet in a court of law and settle it there," Faizal added.