The High Court of Kuala Lumpur set a hearing date for Genting’s application for a judicial review of its tax incentives agreement with the Finance Ministry
The Kuala Lumpur High Court today set a May 30 hearing for the application of casino and hospitality giant Genting Malaysia Bhd for a judicial review of a decision of the Malaysian Ministry of Finance that will delay the company’s utilization of certain tax incentives.
Local news outlet The Edge Markets reported that the date was set earlier today by High Court Judge Azizah Nawawi. The court will hear further details about Genting’s application on May 30.
The company said late last month that it has been granted a leave for the beginning of a judicial review of the Ministry of Finance’s decision to amend a previous agreement with Genting officials regarding certain tax incentives.
Back in 2013, the casino and hospitality company announced its multi-billion ten-year Genting Integrated Tourism Plan for the “development, expansion, enhancement, and refurbishment of hotels, theme park and infrastructure” at its Resorts World Genting integrated resort. The property is located just an hour’s drive from the capital Kuala Lumpur.
The Malaysian Ministry of Finance approved the plan late in 2014. That approval, among other things, entitled Genting to income tax exemption “equivalent to 100% of qualifying capital expenditure incurred for a period of 10 years.”
Agreement Amendments
In December 2017, the Finance Ministry revised its previous decision and amended the terms of its agreement with Genting. The amendments did not “remove the tax incentives previously granted” but aimed to “effectively prolong the utilization period of the tax allowances significantly”, Genting said in a late January filing to Bursa Malaysia.
The gaming resorts operator filed an appeal with the Ministry last year, seeking to reverse the latter’s decision. However, its filing was turned down in the fall of 2018. Genting is now hoping that the High Court would rule in its favor.
Aside from setting a date for the judicial review, the court also granted a stay on the Ministry of Finance’s decision.
Among other things, the Genting Integrated Tourism Plan also included the addition of the world’s first Fox-branded theme park at the company’s Resorts World Genting resort. However, it became known not long ago that the theme park portion of the refurbishment and expansion scheme has fallen through as Fox has stepped back from its naming rights agreement with Genting.
The gaming and hospitality company announced last year that it has filed a lawsuit in the United States, seeking $1 billion in damages from Fox and Disney. The two US entertainment conglomerates are entering the final stages of a $71 billion deal that, pending regulatory approval, will see Disney acquire multiple Fox assets. Genting said in its lawsuit that it had already spent more than $750 million for the development of the theme park and that costs incurred by Fox’s withdrawal from the project could exceed $1 billion.
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