Deputy public prosecutor Afzainizam Abdul Aziz, in his closing submission, said Shafee wanted to avoid paying taxes for the money he received and used it to buy a bungalow worth RM9.3 million.
Afzainizam submitted that the lawyer had used the money for personal interests. He also questioned why the RM9.5 million income Shafee had received was not reported to the Inland Revenue Board (LHDN).
“Why did this happen? It’s because he (Shafee) was mainly thinking about his personal gain by purchasing the bungalow.
“As a lawyer, he should know that income must be reported and lawyers are reminded by the Bar Council for income to be declared. However, he used 97% from the RM9.5 million to purchase an asset when in fact income tax should have been paid (on the sum),” he said.
According to Afzainizam, Malaysian Anti-Corruption Commission (MACC) investigations also found that two cheques received from the former prime minister was money from illegal activities which was then deposited into the lawyer’s personal account.
He said Shafee had told MACC that the RM9.5 million was a loan from Najib and therefore he did not have to declare it to LHDN or pay taxes as it was not an income.
Meanwhile, Harvinderjit Singh, representing Shafee, said the RM9.5 million received by his client from Najib was not from illegal activities.
“The money was obtained legally after Shafee provided legal services to Najib regarding the Umno and Barisan Nasional (BN) election petitions,” he said, adding that Najib should be called to testify in court to prove that the money given was for legal fees.
At the end of the submissions, judge Jamil Hussin set Oct 28 to decide whether Shafee will be acquitted or has to enter his defence against the four charges he is facing.
On May 12, the prosecution closed its case after calling eight witnesses in the trial which began on May 21, 2021.
On Sept 13, 2018, Shafee pleaded not guilty to receiving proceeds from unlawful activities via cheques issued by Najib, which were remitted into Shafee’s CIMB Bank account.
He allegedly received a cheque for RM4.3 million on Sept 13, 2013, and another for RM5.2 million on Feb 17, 2014.
The offences were allegedly committed at the CIMB Bank in Taman Tunku, Bukit Tunku, here.
The charges, under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, carry a fine not exceeding RM5 million or up to five years’ jail or both upon conviction.
Shafee is also charged with two counts of engaging in transactions resulting from illegal activities, namely submitting incorrect tax returns, which is in violation of paragraph 113 (1) (a) of the Income Tax Act 1967 for the financial years ending Dec 31, 2013, and Dec 31, 2014.
He allegedly committed the offences at LHDN’s Jalan Duta branch at Kompleks Pejabat Kerajaan, Jalan Tuanku Abdul Halim here on March 3, 2015 and June 29, 2015.
For this, Shafee is liable to be jailed for a maximum of 15 years and fined not less than five times the amount of proceeds from the unlawful activity, if convicted.