KUALA LUMPUR: Lawyers involved in tax litigation must not only serve their clients but also safeguard the public interest and uphold the integrity of the legal system, says Chief Justice Tun Tengku Maimun Tuan Mat.
She stressed that legal representatives, whether advocating for taxpayers or the government, play a crucial role in shaping legal precedents that impact the public.
She also reaffirmed the judiciary’s role as the final safeguard against unjust tax enforcement, ensuring that taxation laws comply with constitutional principles.
Tengku Maimun was speaking at the launch of the book Malaysian Tax Law & Principles at Sime Darby Convention Centre here yesterday.
“So to the esteemed members of the Bar, whether you appear for the taxpayer or the taxing authority, you must remember that any precedent you help set must not only bring justice to your client, but also to the public that expect the highest level of integrity from all those tasked to uphold the rule of law,” she said.
While judges must continue to decide cases in accordance with the law and the facts without regard to their own mind on what tax law should be, Tengku Maimun said they can only do so if they are fairly guided by sound legal principles and with honesty to the Bench.
Speaking on the role of the judiciary in tax law, she said the most foundational provisions are Article 4(1) and Article 121 (1) of the Federal Constitution.
She also cited a case brought by former prime minister Datuk Seri Najib Razak, where the constitutionality of tax law was challenged.
“There, it was alleged that Section 106(3) of the Income Tax Act was void for the reasons that it usurped judicial power in Article 121 (1) of the Constitution; that it does not accord a taxpayer the right to a fair trial and that it impedes their right of access to justice, both rights being preserved by Article 5(1) of the constitution,” she said.
“In considering the applicable constitutional principles, the Federal Court remarked thus the determination of the validity of a written law that is challenged as ultra vires in the Constitution is an exercise of construction which is to be undertaken in accordance with established constitutional principles.
“This is equally true for tax or fiscal statutes as it is for any other statute,” she said.
She said the courts must be the last bastion of justice, where any member can seek recourse to challenge any law they believe to be constitutionally non-compliant.
She said while tax authorities such as LHDN have a wide array of powers, every legal power is bound by legal limits.
While the courts remained the last bastion of justice that protects the public from legal injustice, she said, it did not mean that the courts are in any way interfering with taxation, a matter in which the courts can have no say.
Instead, she said the role of an independent judiciary was to ensure that the law and legal process, as complex as they are, remain paramount and that their compliance is always maintained.
