UOA Development's (KLSE:UOADEV) unit, Dutamas Assets, received an additional tax assessment with penalties totaling 165.7 million ringgit for the 2020 assessment year, according to a Friday Malaysian bourse filing.

Shares slid about 2% in Monday's late morning trade.

The notice was issued by the Director General of Inland Revenue (DGIR) over gains from the disposal of UOA Corporate Tower to UOA REIT, which the DGIR classified under corporate income tax instead of real property gains tax.

The property developer said it has strong grounds to challenge the assessment, and plans to file an appeal within 30 days.

UOA Development expects no immediate financial impact, it said.