MyEG Faces Fresh Legal Challenge Over Tax Assessment
Malaysia-based Zetrix AI Berhad is facing another legal challenge after its wholly owned subsidiary, My EG Sdn Bhd (MyEG), received an additional income tax assessment totalling RM353.13 million from the Inland Revenue Board (IRB).
In a Bursa Malaysia filing, Zetrix AI disclosed that MyEG received a letter from the tax authority on October 28, 2026, covering the assessment years 2021, 2022 and 2023. The same notification informed the company that the Malaysian government had filed a civil suit against MyEG over the matter.
The subsidiary has appealed the assessment before the Special Commissioners of Income Tax and said it is seeking an amicable resolution with the IRB. It also stated that it is prepared to defend its position through the appropriate legal channels.
Understanding the RM353.13 Million Assessment
The additional tax assessment comprises two main components:
RM333.11 million: Additional income tax relating to transfer pricing.
RM20.02 million: Deemed interest, including penalties.
The total assessment amounts to RM353,134,026.20.
Transfer pricing assessments generally concern transactions between related entities and whether their pricing complies with applicable tax requirements.
MyEG has expressed confidence in the merits of its position and said it will take the necessary steps to safeguard its interests.
Separate RM314 Million Dispute Over JPJ Collections
The tax dispute comes amid a separate disagreement involving RM314 million in government revenue collected on behalf of Malaysia's Road Transport Department (JPJ).
According to previous company disclosures, the outstanding amount relates to collections made between May 19 and September 30, 2026. The government has raised concerns over the delayed remittance of these funds.
JPJ suspended Zetrix AI and MyEG's collection services on October 5. The suspension affects services connected to road tax and driving licence renewals, as well as summons payments.
Transport Minister Anthony Loke has described the delayed remittance as a serious breach of contractual obligations and said government revenue collected on its behalf should not be used for company operations.
Zetrix AI previously confirmed the RM314 million outstanding amount and said discussions with the authorities were ongoing. The company also indicated that it had submitted a proposal to resolve the matter.
Importantly, the RM353.13 million tax assessment and the RM314 million JPJ collections dispute are separate matters.
Regulatory and Financial Pressure on Zetrix AI
These developments add to the challenges facing Zetrix AI, which has also faced scrutiny over its financial position and regulatory matters.
The Edge Malaysia reported that Securities Commission Malaysia officials visited the company's headquarters for an investigation, citing sources familiar with the matter. The regulator declined to comment on the reported visit.
Zetrix AI has also faced pressure following a breach of a sukuk covenant linked to a change in its shareholding structure. The company has said the resulting event does not require immediate repayment of its outstanding sukuk.
These developments have drawn attention to the company's financial obligations, governance and relationship with government agencies.
What Happens Next?
MyEG is pursuing an appeal against the tax assessment while seeking a resolution with the IRB. The government civil suit adds a separate legal dimension to the tax dispute.
Meanwhile, the RM314 million JPJ collections issue remains unresolved in the reported disclosures, with the company's collection services suspended.
The outcome of these proceedings could have implications for Zetrix AI's financial position, government-service operations and investor confidence. Further developments will depend on the legal process and discussions between the company and Malaysian authorities.
