In a statement, Lim clarified that Utar, as a private university, had never been given any tax-exempt status, while Utaref’s tax-exempt status has not been revoked as reported by media.

“Utaref’s tax-exempt status granted under Section 44(6) of the Income Tax Act on July 1, 2003 remains unchanged and has never been revoked, while Utar had never been granted tax-exempt status under the Act.

“LHDN maintains that Utaref and Utar are treated as two different entities for tax purposes,” she said.

Lim added LHDN has confirmed that the income generated by Utaref will continue to enjoy tax-exempt status.

Lim said Utar is currently appealing LHDN’s decision to impose outstanding taxes and penalties amounting to RM83 million on its income.

She said the appeal is currently being processed by the ministry’s tax division and promised to follow up on the matter.

Earlier today, Sin Chew Daily reported that Utaref was recently hit with an RM83 million tax bill, which included fines of up to 45%.

The daily quoted sources who said the move meant Utaref’s tax-exempt status, which the foundation had enjoyed since 2003, had been revoked.

The report also questioned whether the government was now collecting income tax from private universities and charitable organisations that were previously exempted from such taxes in a bid to boost the government’s coffers.

Lim denied the claim.

“I have informed LHDN of the public’s concerns about whether this represents a new tax formula aimed at collecting additional revenue for the government,” she said.

“LHDN assured me that this is not the case and that they are adhering to existing conditions and guidelines governing institutions that have been granted tax-exempt status.”