Raffles Education receives letter of demand for 33.7 million yuan from Chinese company

The group believes that the claim, which relates to a 2021 equity transfer, is ‘without merit’

Raffles Education has received a letter of demand claiming that it is liable for about 33.7 million yuan (S$6.2 million) in enterprise income tax and late payment penalties, the group disclosed in a bourse filing on Friday (Aug 22).

The letter of demand is from Oriental University City Development Co, a Chinese company. The sum is said to be related to the transfer of an equity interest in the Bank of Langfang made by Oriental University in 2021 to a third party designated by Raffles Education.

Raffles Education believes that the claim is “without merit”, and is working with legal advisers to prepare a response.

“The company’s position is that it has no liability for the tax payment in question, and (it) intends to vigorously dispute the claim in its entirety,” it said.

Shares of the mainboard-listed company ended Friday at S$0.049, up 2.1 per cent.

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