The Inland Revenue Board (LHDN) filed the writ of summons against Tan Kim Loong, who is linked to the movement of billions of ringgit in the scandal-ridden 1MDB, in the High Court here on Jan 15.
In cause papers sighted by FMT, the government is seeking a total of RM67,996,891.87 in unpaid tax arrears for the assessment years between 2010 and 2013.
The government claims that tax assessment notices sent via registered post to Tan’s last known address at Taman Pusat Kepong, Kuala Lumpur, on Nov 24 last year were not returned.
“The defendant has failed to pay the plaintiff the tax amount for the assessment years of 2010, 2011, 2012, and 2013, inclusive of other increments imposed on him which totalled RM67,996,891.87,” the government said.
The government is also seeking 5% annual interest on the tax amount sought, calculated from the date of judgment to date of realisation, costs, and any other relief deemed fit by the court.
Court records also showed Tan has not entered appearance so far in the suit, meaning he has not engaged a lawyer to represent him.
A tax lawyer told FMT that the government could apply for a default judgment if it has taken all steps to serve the cause paper to Tan or his counsel.
Tan’s name cropped up during former prime minister Najib Abdul Razak’s RM42 million SRC International trial last year.
He was named as the frontman for Jho Low in all his banking transactions involving billions of ringgit from 1MDB and is a family friend and business partner to Jho Low’s siblings.
He was a shareholder in several companies in Malaysia and Singapore, doing business with relatives of Jho Low before becoming the fugitive businessman’s point person and most trusted aide.
The police and Malaysian Anti-Corruption Commission are still trying to track down his whereabouts.
Tan’s identity only emerged in public during the trial of a former BSI Bank of Singapore banker, Yeo Jia Wei, who was sentenced to 54 months jail for his role in the 1MDB fiasco.
Jho Low also used Tan to galvanise support for Barisan Nasional’s election campaign in its attempt to wrest back Penang in the 2013 general election.