Shafee, LHDN to settle RM9.41mil income tax suit

KUALA LUMPUR: Lawyer Tan Sri Muhammad Shafee Abdullah and the Inland Revenue Board (LHDN) are in the process of settling a suit filed by the latter to recover over RM9.41mil in income tax arrears owed by him.

Counsel Datuk Seri Rajan Navaratnam, representing Muhammad Shafee, told High Court Judicial Commissioner Roz Mawar Rozain that the parties are also seeking an adjournment of today's hearing due to the new development (to settle the suit).

ALSO READ: High Court dismisses Shafee's bid to initiate counterclaim against LHDN

The court was scheduled to hear LHDN’s application for a summary judgment against Muhammad Shafee on Monday (Dec 4).

A summary judgment is obtained when the court decides on a case through written submissions without a full trial and calling witnesses.

Roz Mawar then set 8.30am on Dec 15 to hear the application for a summary judgment by LHDN.

"If there is no settlement, I have to proceed with the case. This case has gone long enough," she added.

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

Meanwhile, Rajan told reporters that both parties are negotiating to explore the possibility of a settlement.

"We just want to see if it can be resolved amicably," he said.

Senior Revenue Counsel Al-Hummidallah Idrus, representing LHDN, said the LHDN had responded to a proposal sent by Muhammad Shafee last month to settle the case.

On Sept 27, 2021, the LHDN applied for its suit against Muhammad Shafee, which was filed on May 6, to be decided through summary judgment, on grounds that the defendant had failed to pay the income tax arrears amounting to RM9,414,708.32 within the stipulated time.

LHDN claimed that the lawyer 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.

On Oct 28 last year, the High Court acquitted and discharged Muhammad Shafee on two charges of receiving proceeds from unlawful activities amounting to RM9.5mil from former prime minister Datuk Seri Najib Razak and two charges of making incorrect statements to the LHDN.

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