Sept 28 decision on Shafee’s stay application over LHDN suit

KUALA LUMPUR: The High Court here will decide on Sept 28 an application by lawyer Tan Sri Muhammad Shafee Abdullah to stay the proceedings of a suit filed against him by the Inland Revenue Board (LHDN) for failing to pay income tax arrears amounting to RM9.41mil.

Muhammad Shafee applied to stay the proceedings pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia.

Lawyer Wee Yeong Kang, representing Muhammad Shafee, said Judicial Commissioner Roz Mawar Rozain set the date after hearing submissions by both parties during an online proceedings on Tuesday (Sept 13).

"The decision on the application will be delivered online (via Zoom) at 11am," he said when contacted by reporters.

However, Wee said the date for the hearing of his client’s appeal at the Special Commissioner of Income Tax Malaysia has not yet been set.

Muhammad Shafee, 70, filed the application on Nov 3 last year, which, among others, sought an order for the proceedings to be temporarily suspended pending the outcome of an application filed by former prime minister Datuk Seri Seri Najib Razak and his son, Datuk Mohd Nazifuddin, regarding the payment of income tax, amounting to RM1.69bil and RM37.6mil respectively to the LHDN, before the Federal Court.

Among the grounds cited by Muhammad Shafee was that he had filed a notice of appeal against the notices on additional assessment for the assessment years 2011, 2012, 2013, 2014 and 2016, to the LHDN on June 27, 2019, apart from the existence of special circumstances that warrant the stay.

On Sept 27 last year, the LHDN applied for its suit against Muhammad Shafee, which was filed on May 6, to be decided through summary judgment, on the grounds that the defendant had failed to pay the income tax arrears amounting to RM9,414,708.32 within the stipulated time.

Muhammad Shafee is also facing two charges of receiving RM9.5mil in proceeds from unlawful activities from Najib, and two charges of making false declarations to the LHDN. - Bernama