MyEG Faces RM353 Million Tax Bill and Government Lawsuit
MyEG Faces RM353 Million Tax Bill and Government Lawsuit
MyEG, a wholly owned subsidiary of Zetrix AI, has received an additional RM353.13 million tax assessment from the Inland Revenue Board (LHDN) and is facing a civil lawsuit filed by the Malaysian government over transfer pricing matters involving the 2021 to 2023 assessment years. The development comes amid a separate dispute involving RM314 million in JPJ revenue collections that were allegedly not remitted to the government on time, placing the company under further legal and financial scrutiny.
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Key takeaways
- MyEG received an additional tax assessment of RM353.13 million from LHDN on 28 October 2026.
- The assessment covers the 2021, 2022 and 2023 assessment years.
- RM333.11 million relates to transfer pricing, while RM20.02 million relates to deemed interest, including penalties.
- The Malaysian government has filed a civil lawsuit against MyEG over the tax matter.
- MyEG has appealed to the Special Commissioners of Income Tax and says it intends to defend its position.
What happened to MyEG and Zetrix AI?
MyEG's parent company, Zetrix AI Berhad, disclosed the latest development in a filing with Bursa Malaysia on 29 October 2026. According to the announcement, MyEG received a letter from LHDN on 28 October notifying it of additional income tax assessments relating to transfer pricing for the 2021 to 2023 assessment years. The total amount stands at RM353,134,026.20, including deemed interest and penalties. The same letter also informed the company that the Malaysian government had filed a civil lawsuit against MyEG over the matter. This is a significant development because the company is already dealing with a separate dispute involving outstanding government revenue collected through JPJ transactions.
Breaking down the RM353.13 million tax assessment
The RM353.13 million assessment consists of two main components. The larger portion concerns additional income tax relating to transfer pricing, while the remaining amount involves deemed interest and penalties. Here is the breakdown:
| Assessment component | Amount |
|---|---|
| Additional income tax relating to transfer pricing | RM333,109,332.46 |
| Deemed interest, including penalties | RM20,024,693.74 |
| Total assessment | RM353,134,026.20 |
What is transfer pricing? Transfer pricing refers to the prices charged for transactions between related companies or entities, such as businesses within the same corporate group. Tax authorities examine these transactions to determine whether the prices reflect appropriate market conditions and comply with tax requirements. In this case, the additional assessment concerns transfer pricing matters involving MyEG's 2021, 2022 and 2023 assessment years. However, the detailed basis of the tax authority's adjustments has not been fully disclosed in the announcement. Has MyEG accepted the assessment? No. Zetrix AI stated that MyEG is confident in the merits of its position and intends to safeguard its interests through the appropriate legal channels. The company has also filed an appeal before the Special Commissioners of Income Tax to challenge the additional assessments while seeking an amicable resolution with LHDN.
Why is the Malaysian government suing MyEG?
The government has filed a civil lawsuit against MyEG in connection with the additional tax assessment. This is separate from the earlier dispute involving RM314 million in government revenue collected through JPJ services. On 27 October 2026, Transport Minister Anthony Loke said the government was pursuing legal action against MyEG and Zetrix AI over outstanding government collections and penalties. The government had previously suspended both companies from providing JPJ collection agent services after RM314 million in collections from 19 May to 30 September 2026 had not been remitted within the stipulated period. However, there is an important distinction between the two matters:
| Issue | Tax assessment | JPJ collections |
|---|---|---|
| Amount | RM353.13 million | RM314 million |
| Nature of issue | Additional income tax assessment involving transfer pricing | Government revenue not remitted within the stipulated period |
| Relevant authority | LHDN | JPJ and the Transport Ministry |
| Legal development | Civil suit filed against MyEG | Government announced legal action against MyEG and Zetrix AI |
The two amounts concern different matters and should not be combined into a single tax or debt assessment.
What does this mean for Malaysian drivers?
For everyday motorists, the situation raises questions about the handling of vehicle-related transactions, particularly services involving government collections. MyEG previously operated as a JPJ collection agent, meaning the suspension of its collection services is relevant to motorists who used its services for certain transactions. Drivers should understand which channels are available for their vehicle-related needs and keep their transaction records.
Understanding the JPJ collection issue
The RM314 million dispute concerns government revenue collected through JPJ transactions that was not remitted within the required period. Following the suspension, Transport Minister Anthony Loke said the government was examining improvements to its collection system to reduce reliance on third-party agents. One proposed measure involves using the Treasury Minor Receipts Account to channel government revenue directly into government accounts rather than passing through third-party accounts. The government also proposed tightening its revenue management system so that transactions could be automatically suspended if a collection agent failed to remit funds within one working day.
How drivers can manage vehicle-related matters
Although the legal proceedings do not automatically change motorists' vehicle ownership responsibilities, drivers should continue monitoring their road tax, insurance and traffic summonses. The Motorist App provides vehicle management tools that help Malaysian drivers keep track of important motoring matters. These include reminders for road tax and insurance expiry, traffic fine alerts, vehicle information and real-time traffic updates. However, the Motorist App is not a government replacement for JPJ or LHDN services, and drivers should use the relevant official channels for government transactions.
What happens next?
The next major development will depend on the legal proceedings and MyEG's appeal against the additional tax assessment. Zetrix AI has stated that MyEG intends to defend its position and is seeking an amicable resolution with LHDN. Meanwhile, the government is pursuing the separate JPJ revenue matter. As of 30 October 2026, no final court judgment or resolution of the RM353.13 million tax dispute has been announced.
Expert tip: Keep records of every vehicle-related transaction
Whenever you pay for road tax, insurance or traffic summonses, retain your payment receipts and transaction references. These records can help you verify whether a payment was successfully processed if a dispute or payment discrepancy arises.
Common mistake: Confusing the RM353 million and RM314 million cases
These are two separate matters. The RM353.13 million concerns additional income tax assessments, while the RM314 million relates to outstanding JPJ government collections. They involve different issues and should not be treated as the same debt.
Managing your vehicle: Traditional methods vs Motorist App Vehicle management Traditional method Motorist App Road tax reminders Manually check expiry dates Receive expiry reminders Insurance reminders Keep personal calendar notes Receive insurance expiry reminders Traffic summonses Check relevant channels individually Receive traffic fine alerts Vehicle information Keep physical or digital records separately View vehicle details in one place Insurance quotations Contact providers individually Receive competitive quotations within 24 hours The Motorist App is designed to simplify vehicle ownership management, not replace official government authorities or resolve corporate legal disputes.
What drivers should take away from the case
MyEG's RM353.13 million tax assessment and the government's civil lawsuit mark another development in its ongoing disputes with Malaysian authorities. The separate RM314 million JPJ collection issue also highlights the importance of transparent government revenue handling. For motorists, keeping track of vehicle documents, payments and renewal deadlines remains essential. Download the Motorist App to manage your vehicle information, receive important reminders and stay informed about your motoring responsibilities.
Frequently Asked Questions
1. Why is MyEG facing a RM353 million tax assessment?
MyEG received an additional income tax assessment from LHDN involving transfer pricing matters for the 2021, 2022 and 2023 assessment years, including deemed interest and penalties.
2. How much does MyEG owe LHDN?
The additional assessment totals RM353,134,026.20, comprising RM333.11 million in additional income tax relating to transfer pricing and RM20.02 million in deemed interest, including penalties.
3. Is the Malaysian government suing MyEG?
Yes. The Malaysian government has filed a civil lawsuit against MyEG over the additional tax assessment, according to Zetrix AI's Bursa Malaysia announcement dated 29 October 2026.
4. What is transfer pricing in Malaysia?
Transfer pricing refers to the pricing of transactions between related companies or entities. LHDN examines these transactions to determine whether they comply with applicable tax requirements.
5. Has MyEG appealed against the LHDN tax assessment?
Yes. MyEG has filed an appeal before the Special Commissioners of Income Tax to challenge the additional assessments while seeking an amicable resolution with LHDN.
6. Is the RM353 million tax assessment related to the RM314 million JPJ arrears?
No. The RM353.13 million concerns additional income tax assessments, while the RM314 million relates to government collections that were not remitted to JPJ within the stipulated period.
7. Why was MyEG suspended as a JPJ collection agent?
MyEG and Zetrix AI were suspended from providing JPJ collection agent services after RM314 million in government collections from 19 May to 30 September 2026 had not been remitted within the stipulated period.
8. Will the MyEG case affect Malaysian drivers?
The legal proceedings do not automatically change motorists' road tax, insurance or driving responsibilities. However, drivers should stay informed about changes to government collection arrangements and use the appropriate official channels.
9. Can Malaysian drivers still renew road tax and pay summonses?
Yes. Drivers should use the available official JPJ channels and other authorised payment channels for their transactions. They should always retain payment confirmations and receipts.
10. How can Malaysian drivers keep track of road tax and insurance renewals?
Drivers can use the Motorist App to receive reminders for road tax and insurance expiry, monitor traffic fine alerts and manage important vehicle information.
Download the Motorist App today and make managing your vehicle ownership easier with reminders, vehicle information and motoring updates.
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