KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] has decided to rectify its first interim dividend payment for the financial year ended March 31, 2009 to two sen per share single tier and two sen per share tax exempt from its previously declared franked dividend, as it did not have sufficient tax credits to frank the dividend from its 108 account.
In a statement yesterday, the company said due to a change in tax legislation, it was ascertained that the franked dividend of two sen per share less 25% tax and two sen per share tax exempt, which had been paid to it by its subsidiary company on Dec 29, 2008, could not be credited into its 108 account.
“Therefore, Hartalega did not have sufficient tax credits to frank the dividend from its 108 account. To rectify this situation, there has been a recommendation to replace the franked dividend with a tax-exempt dividend,” it said.
The company would also pay the difference of 0.5 sen per share to all its shareholders as appeared in the shareholders’ first dividend entitlement listing on Dec 15, with the differences to be paid on Nov 6, 2009.
The company also advised entitled shareholders of the first interim dividend not to claim the Section 110 credit from the initial dividend received as the original dividend tax voucher was now void.
“If any shareholders were to claim credit using the old tax voucher, the shareholders will be penalised under Section 113(2) of the Income Tax Act, 1967. A letter advising on such matter accompanying the payout would be sent to all entitled shareholders of the company as at Dec 15, 2008,” it said.
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