Malaysian timber tycoon vs Aussie govt: Next round on Jan 20

KUALA LUMPUR: A High Court has set Jan 20 to hear an application by the Australian Government and its tax office (ATO) to strike out a lawsuit filed by Malaysian timber tycoon Hii Yii Ann.

The ATO had imposed an AUD49mil (RM160mil) tax assessment on Hii over his income earnings outside Australia.

In his originating summons dated July 22, Hii is seeking a declaration from the court that he was a tax resident of Malaysia from 2001 to 2009, and that the decision of the ATO is invalid.

He is also seeking a declaration that the defendants have breached the spirit and intent of the Dual Tax Agreement executed between Australia and Malaysia in 1980.

Justice S. Nantha Balan fixed the date to hear the matter after meeting the parties in chambers Tuesday.

Speaking to reporters later, lead counsel Datuk D.P. Naban, who acted for both defendants, said his clients want to strike out the originating summons, citing issues of sovereign immunity.

Naban said the judge has ordered both parties to file written submissions for the hearing proper.

Hii, 56, who was knighted by Queen Elizabeth in 2007, said the decision of the ATO dated Dec 20, 2013 was invalid as he is a Malaysian and has been declaring his tax deductions in Malaysia over his earnings from five countries.

His lawyer Sarita Khandhar, who confirmed the details, said they would oppose the striking-out bid but declined to elaborate further.

Hii's lead counsel Datuk Alvin John had told media recently that the ATO should have contacted Malaysian authorities over his client's particulars on his tax deductions before imposing such a decision on him.

In elaborating, John had said that under the Australian tax law, the ATO has the jurisdiction to claim taxes from any person who has resided in Australia for a minimum of six months in a year.

He said Hii had visited his six children who were studying in Australia from the year 2001, but never stayed for any long period there.

Hii contended that Australia has no right to decide that he – who holds a Malaysian passport, birth certificate and identity card – had abandoned his Malaysian domicile and chosen Australia as his domicile.

In his July 22 originating summons, he named the Commissioner of Taxation of the Commonwealth of Australia, his deputy, and the Commonwealth of Australia, as defendants in his lawsuit.  

Related Stories:

Malaysian timber tycoon sues Australian government in tax dispute

A taxing case before the court