Court allows Mukhriz’s bid to stay LHDN notice for additional RM5mil payment

Court allows Mukhriz’s bid to stay LHDN notice for additional RM5mil payment

The former Kedah menteri besar is seeking to quash the Inland Revenue Board’s issuance of an additional assessment notice for assessment years 2017 to 2019.

Mukhriz Mahathir
Former Kedah menteri besar Mukhriz Mahathir filed the judicial review application on Dec 20 last year.
PETALING JAYA:
The Kuala Lumpur High Court has allowed an application by Mukhriz Mahathir to stay an additional assessment notice issued by the Inland Revenue Board (LHDN), pending the decision of his judicial review application to quash the notice.

The former Kedah menteri besar had applied to quash LHDN’s issuance of a notice for him to pay more than RM5 million for the assessment years 2017 to 2019.

Bernama reported that Justice Amarjeet Singh allowed the stay application after hearing submissions from lawyer Nizamuddin Abdul Hamid, representing Mukhriz, and senior federal counsel Harris Hanapi, representing the LHDN director-general, who was the first respondent.

The proceeding was also attended by federal counsel Ng Wee Li, representing Prime Minister Anwar Ibrahim and the Malaysian government, named as the second and third respondents, respectively.

Earlier, Harris submitted that LHDN objected to the stay application because granting the application would give the impression that taxpayers would not have to pay their taxes under Section 103 of the Income Tax Act (ITA) 1967.

However, Nizamuddin said no provision in the ITA prevented the court from granting a stay.

Mukhriz, who is also Pejuang president, filed the judicial review application on Dec 20 last year.

In his application, he seeks to nullify the decision of the LHDN director-general in issuing the additional assessment notice for the 2017 to 2019 assessment years, amounting to RM5,020,707.18.

He argues that the decision was unlawful and unreasonable, and also seeks a declaration that the penalty imposed under Section 113(2) of the ITA is null and void.

Mukhriz also requests a declaration of abuse of authority against Anwar, claiming that the second respondent improperly directed the first respondent to issue the additional assessment notice and a certificate under Subsection 104(1) of the ITA.

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