It’s a political move, cries Shafee of suit to recover RM9.4mil in back taxes

It’s a political move, cries Shafee of suit to recover RM9.4mil in back taxes

The prominent lawyer complains that the matter was revealed to the public even before the legal papers were served on him.

Muhammad Shafee Abdullah is also facing four counts of money laundering involving RM9.5 million received seven years ago, purportedly from Najib Razak.
PUTRAJAYA:
Lawyer Muhammad Shafee Abdullah, slapped with a suit by the Inland Revenue Board (LHDN) to recover RM9.41 million in alleged unpaid taxes over five years, today described the action as a “political move.”

“The suit was made public even before the legal papers were served on me,” he told reporters here.

However, Shafee, who is representing former prime minister Najib Razak in a number of civil and criminal cases, did not elaborate.

The LHDN, which filed the suit at the High Court in Kuala Lumpur on May 6 here, alleged that Shafee owed the government the sum for unpaid taxes in 2011 (RM434,326.17), 2012 (RM978,854.11), 2013 (RM3.58 million), 2014 (RM1.73 million) and 2016 (RM1.82 million).

It is also seeking a further 5% interest from the date of judgment and costs.

Shafee is being penalised as he is said to have failed to settle the amount within the stipulated time under Section 130 of the Income Tax Act 1967.

According to the Act, a 10% penalty will be imposed on the outstanding amount if the balance of tax payable is not paid by the due date.

An additional 5% will also be imposed on the tax and penalty outstanding if the amount is still outstanding within 60 days from the due date.

The LHDN said notices of assessments for the five years were mailed to Shafee’s last known address in Bukit Tunku, Kuala Lumpur, on May 31, 2019, and that the notices were never returned to the board.

Shafee is also facing four counts of money laundering involving RM9.5 million received seven years ago, purportedly from the former prime minister.

Two of Shafee’s four charges are related to allegations that he made false declarations to LHDN in 2014.

The money laundering case is pending before the High Court.

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