Naimah contends that LHDN cited the wrong provisions in the Income Tax Act 1967 when issuing a notice for payment of the sum as tax assessed for 2018.

She also said that since January, LHDN has questioned her about an increase in her shares in Ilham Baru Sdn Bhd, and claimed she used “unreported income” to pay off a loan between Ilham Baru, Ilham Tower Sdn Bhd and Welberton Private Equity Corp.

LHDN also says she owns several properties in the US which she allegedly failed to declare, namely units at the Nantasket Beach Resort Hotel in Massachusetts, Chauncy Place, and Hotel Buckminster and Annex in Boston.

LHDN claims these properties are worth more than RM700.6 million.

However, Naimah said these properties were purchased more than 30 years ago and cannot be valued using the market price as at 2018.

“My lawyers have explained that the assets are not in the country and do not fall within LHDN’s purview.

“But LHDN stated that as long as I am a taxpayer here (in Malaysia), I am subjected to an audit relating to all my sources of income, regardless of where it originates from.”

Naimah claimed that LHDN had “colluded” with the Malaysian Anti-Corruption Commission to create difficulties for her and to tarnish her reputation.

She is also seeking a court declaration that the provisions of the Income Tax Act cannot be “extended” to require that taxpayers furnish information on their foreign assets.

The court fixed Sept 3 for case management.