Shafee delaying our claim to RM9.4mil income tax arrears, says LHDN

Shafee delaying our claim to RM9.4mil income tax arrears, says LHDN

The board urges the High Court to set aside the lawyer’s application for a stay of proceedings.

Muhammad Shafee Abdullah is seeking a temporary suspension of the proceedings against him pending his appeal to the Special Commissioners of Income Tax. (Bernama pic)
KUALA LUMPUR:
The Inland Revenue Board (LHDN) has applied to the High Court here to set aside Muhammad Shafee Abdullah’s application to stay the proceedings of its suit seeking payment of income tax arrears amounting to RM9.41 million from him.

LHDN said the senior lawyer’s intention was to delay settlement of the claim.

An affidavit in reply filed on Jan 26 on behalf of the plaintiff – the government – said Shafee had also abused the court process.

“If this happens (stay of proceedings allowed), the rights of the plaintiff and Malaysians will be denied and seriously prejudiced, said the affidavit, affirmed by LHDN’s Control Unit principal assistant director, Shamsul Effendi Khamis.

It said the government needed adequate revenue for the development and smooth administration of the country as well as to look after the welfare of the people and address the impact of the Covid-19 pandemic.

On Nov 3 last year, Shafee filed an application to temporarily suspend the proceedings pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia, apart from other special circumstances, to suspend the hearing.

The lawyer said the application was also filed pending the outcome of the application by Najib Razak and his son, Mohd Nazifuddin, on the payment of income tax arrears to LHDN amounting to RM1.69 billion and RM37.6 million, respectively, to be heard in the Federal Court on Feb 16.

On Sept 27, 2021, LHDN had requested that the suit against Shafee be decided through summary judgment, whereby the court can decide without hearing the testimonies of witnesses.

LHDN filed the suit against Shafee on May 6, 2021, claiming that he had not settled payment in tax arrears for five assessment years from 2011 to 2016.

Shafee, who is the lawyer representing Najib in the case involving the misappropriation of SRC International and 1MDB funds, is also facing two charges of receiving RM9.5 million in proceeds from unlawful activities from Najib, and two charges of making false declarations to the LHDN.

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