LHDN objects to Shafee's application to file counterclaim over income tax

KUALA LUMPUR: The Malaysian government, through the Inland Revenue Board (LHDN), objected to Tan Sri Muhammad Shafee Abdullah's application to obtain leave from the court to file a counterclaim against IRB’S demand that he pay income tax arrears amounting to RM9.41mil.

LHDN senior counsel Al-Hummidallah Idrus objected to the application on grounds based on Order 73 of Rule 4 of the Rules of Court 2012 and Subsection 42(2)(e)(i) of the Government Proceedings Act 1956, which states that counterclaims cannot be filed against the government for tax collection actions.

High Court Judicial Commissioner Roz Mawar Rozain set April 13 for the decision on the objection to the application.

Lawyer Muhammad Farhan Muhammad Shafee, who represented Shafee, confirmed the date of the decision when contacted Thursday (Feb 23).

Shafee was also represented by Datuk Seri Rajan Navaratnam while LHDN senior counsel Norzilah Abdul Hamid and Muhammad Faqrol Syazreen Mohd Ghause also acted for the LHDN.

The lawyer filed the application in May 2021, among others, on the grounds that the tax claim was an attack on him as a political victim in his capacity as a lawyer for Datuk Seri Najib Tun Razak and was considered to be an Umno lawyer even though he was not the party's lawyer.

On Sept 27, 2021, LHDN requested that the suit against Shafee be decided through direct judgment on the grounds that the defendant failed to pay the entire income tax arrears and the tax increase imposed on him amounting to RM9,414,708.32 within the stipulated period.

LHDN, which filed the suit on May 6, 2021, claimed that until now, the lawyer had still failed to pay the amount of income tax owed for the Assessment Years 2011, 2012, 2013, 2014 and 2016 including the increase on the imposed sum.

Shafee is Najib's lawyer in the case of misappropriation of SRC International Sdn Bhd and 1Malaysia Development Berhad (1MDB) funds.

On Oct 28 last year, the High Court acquitted and discharged Shafee on two charges of receiving money from illegal activities amounting to RM9.5mil from Najib and two charges of making incorrect statements to the LHDN.

However, the prosecution on Nov 1 last year filed an appeal against the court's decision. - Bernama