Genting Malaysia has withdrawn a Judicial Review into a 2017 decision by the Ministry of Finance (MOF) to amend the terms of tax incentives granted to the casino operator.
The company, currently in the midst of a multi-billion dollar redevelopment of its Malaysian IR, Resorts World Genting, known as the Genting Integrated Tourism Plan (GITP), was granted tax incentives by the MOF for its GITP in December 2014. Under the agreement, Genting Malaysia would qualify for income tax exemptions equal to 100% of its qualifying CAPEX for a period of 10 years.
However, in December 2017 the MOF amended the agreement to significantly prolong the utilization period of those tax allowances.
Having had an initial appeal over that amendment turned down by the MOF in September 2018, Genting Malaysia filed an application for Judicial Review of the MOF Decision with the Kuala Lumpur High Court in January of this year, which was subsequently granted.
However, the company announced on Thursday that the board has now decided to withdraw the Judicial Review. No reasons for the reversal were provided.
Genting Malaysia has also been stung by an increase in fees and taxes this year, with the MOF revealing in December that the annual casino license fee would rise from MYR120 million (US$28.8 million) to MYR150 million (US$36 million) and the tax on gross gaming income from 25% to 35%.
Earlier this week, Chairman Lim Kok Thay offered to take a 20% pay cut to help offset some of those increased expenses.
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