Petronas granted stay on RM3.6 bil additional tax demand

LHDN says Petronas had undertaken a tax avoidance scheme between 2010 and 2017.

KUALA LUMPUR: The Inland Revenue Board (LHDN) says a leave application for judicial review by Petronas on additional tax assessment before the High Court here has been postponed, pending the outcome of a Federal Court ruling later this month.

Its director of corporate services department, Hisamudin Mohamed, clarified that judge Ahmad Kamal Md Shahid adjourned the hearing following a postponement sought by lawyer Rosli Dahlan, who represented the oil and gas company.

“The judge agreed to the request and the leave application is now fixed for hearing on Sept 18,” he said in a statement.

Hisamudin said Petronas was granted an interim stay from paying RM3.6 billion following an application by Rosli.

He said LHDN counsel Hazlina Hussain had objected to the postponement and the stay application.

On Monday, lawyer S Saravana Kumar, who assisted Rosli, told FMT that Ahmad Kamal accepted their submission that the interim stay be allowed, pending the outcome of the leave application for judicial review.

Petronas filed the action last month after LHDN alleged that the company had undertaken a tax avoidance scheme between 2010 and 2017.

On the same day, Hisamudin said another High Court judge, Mariana Yahya, who was hearing a similar application from Tenaga Nasional Berhad (TNB), also adjourned hearing, pending the Federal Court ruling.

Mariana will hear the parties on Sept 21.

TNB went to court as LHDN took the position that the utility giant was not entitled to claim reinvestment allowance as the company did not manufacture products but was merely a service provider.