Ku Nan’s bid to suspend income tax proceeding to be heard on Jan 7

The Inland Revenue Board is claiming RM57 million in income tax arrears and interest from former minister and Umno strongman Tengku Adnan Tengku Mansor

KUALA LUMPUR: The application by Tengku Adnan Tengku Mansor to suspend the proceedings of a suit against him to seek RM57.17 million in income tax arrears for the period between 2012 and 2017, will be heard on Jan 7 next year.

Tengku Adnan, who was former Umno secretary-general, sought to suspend the proceedings until his appeal to review the tax assessment with the Inland Revenue Board (LHDN) is settled.

Counsel Bahari Yeow Tien Hong, who is representing Tengku Adnan, told reporters that the date was fixed by High Court Judge Azimah Omar after case management in her chambers today which was also attended by senior revenue counsel Al-Hummidallah Idrus and Norhisham Ahmad, representing LHDN.

However, Bahari said the hearing application by LHDN that the suit be decided through summary judgement without going through trial was still pending in court.

A summary judgement is where the court decides on a certain case through arguments without hearing witness statements in the trial.

On Nov 4, Tengku Adnan withdrew his application to strike out the summary judgement applied by LHDN.

The government, through LHDN, filed the suit on July 24 after charging Tengku Adnan as the defendant who is still owing income tax for the assessment years from 2012 to 2017, as stated in the assessment notice dated March 15, 2019.

Based on the claim statement, IRB accused Tengku Adnan of failing to pay the income tax within 30 days of the date when the assessment notice was delivered, as stipulated under Section 103 of the Income Tax Act 1967, and a further 10% increase on the overall income tax imposed.

The plaintiff said the defendant had failed to settle the entire income tax amount, together with the 10% increase. As it is still outstanding after 60 days, a further 5% interest is also imposed on the defendant.

IRB also alleged that to date, the defendant had yet to pay the income tax arrears, together with the increment, amounting to RM57,167,069.35.

The arrears are RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

As such, the plaintiff is seeking from the defendant a total of RM57,167,069.35, with interest on RM57,167,069.35 at 5% per annum from the date of judgement until the realisation date, with costs and other relief as deemed fit by the court.