IHH Healthcare Berhad
l
Annual Report 2014
206
Notes to the Financial Statements
39. Capital and other commitments
Group
Company
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
(a) Capital expenditure commitments
Property, plant and equipment and investment properties
- Authorised and contracted for
2,478,972
425,493
-
-
- Authorised but not contracted for
1,246,703
1,157,038
6,660
-
3,725,675
1,582,531
6,660
-
(b) Joint venture
Share of capital commitment of joint venture
124,419
118,260
-
-
(c) Banker guarantees
Amount of banker guarantees obtained
22,605
21,810
-
-
40. Contingencies (unsecured)
In November 2014, ASH received notification from the tax authorities in Turkey that ASH had under-withheld the value added tax (“VAT”)
amounting to approximately TL25,210,000 (equivalent to RM37,386,000) between 2008 to 2013 for services rendered by doctors who are
partners or employees of another company. This is the result of a difference in interpretation between the Turkish private healthcare industry
and the tax authorities of the VAT rates applicable to such services. The related penalty and interest amounts approximately to TL38,021,000
(equivalent to RM56,384,000) and TL12,100,000 (equivalent to RM17,944,000) respectively.
ASH had initiated discussions with the tax authorities to resolve the matter. Based on consultation with its tax advisors, the Group is of the
opinion that no provision is required to be made in these financial statements.
41. Related parties
For the purpose of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly,
to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group
and the party are subjected to common control or common significant influence. Related parties may be individuals or other entities.
Related parties also include key management personnel defined in Note 31.
