Supermax’s future earnings to see drag from new overseas contact lens biz

KUCHING: Glovemaker Supermax Corporation Bhd (Supermax) saw its earnings for its third quarter of financial year 2017 (3QFY17) coming in below expectations at RM18.8 million.

This brings its 9MFY17 earnings to RM60 million which is below analysts’ and consensus’ full year expectations.

MIDF Amanah Investment Bank Bhd (MIDF Research) said during the quarter, Supermax’s revenue climbed by 37 per cent while its profit after tax and noncontrolling itnerest (PATANCI) declined by 4.3 per cent yearover-year respectively.

On a quarterly sequential basis, revenue also increased by 30.2 per cent but PATANCI dipped by 16.8 per cent.

“Supermax’s revenue recorded an increase for both year-overyear as well as quarter-overquarter due to a more favourable exchange rate for US dollar versus the ringgit during the quarter,” said MIDF Research, adding that the currency averaged at about RM4.45 per US dollar versus RM4.19 in the same quarter last year.

The IRB then made and issued Notices of Additional Assessment for years of Assessment 2006 to 2013, requiring the company to pay a substantial amount of additional tax plus 45 per cent penalty imposed under section 113(2) of ITA.

Aggrieved by this move, the company through its tax consultant, Lam Kam Wing of Tasmanco Consultancy Services Sdn Bhd, submitted Notices of Appeal to the Special Commissioners of Income Tax to appeal against these additional assessments.

This led to a series of discussions and mediation between IRB’s senior officers of the Dispute Resolution Department and the tax consultant held at IRB’s office at Putrajaya and having further studied the lengthy written representation supported by evidence and grounds of appeals submitted by the tax consultant,

The Director General of Inland Revenue finally agreed and decided to fully allow the company’s appeal by discharging the amount of additional tax and the 45 per cent penalty.