Shafee fails in bid to stay LHDN suit for RM9.41mil

KUALA LUMPUR: Senior lawyer Tan Sri Muhammad Shafee Abdullah (pic) has failed in his bid 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.

The High Court yesterday dismissed his application to stay the proceedings pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia.

His lawyer, Muhammad Farhan Muhammad Shafee, said Judicial Commissioner Roz Mawar Rozain dismissed the application with costs of RM5,000 to be paid to LHDN.

“The court rejected the applicant’s (Muhammad Shafee) argument that there were special circumstances to stay proceedings.

“The court fixed Oct 6 for case management to set the hearing date,” he said yesterday.

Senior Revenue Counsel Al-Hummidallah Idrus, who represented LHDN, confirmed the matter, Bernama reported.

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

Muhammad Shafee said he had filed a notice of appeal against the notices on additional assessment for the assessment years 2011, 2012, 2013, 2014 and 2016, to LHDN on June 27, 2019, adding that there were special circumstances that warranted 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, as the defendant had failed to pay the 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 LHDN.