KUALA LUMPUR: The High Court on Tuesday (Aug 3) fixed Nov 16 to deliver its decision on a judicial review application filed by Datuk Seri Mukhriz Mahathir challenging the Inland Revenue Board's (IRB) issuance of Notices of Additional Assessment totalling more than RM5mil for the 2017 to 2019 assessment years.
Judge Datuk Azizan Md Arshad set the date after hearing submissions from lawyer Nizamuddin Abdul Hamid, representing Mukhriz, and Senior Revenue Counsel Marina Ibrahim, appearing for the Director-General of the Inland Revenue Board.
Nizamuddin argued that the additional assessment for the 2019 assessment year had already been settled and that the notices were invalid because they were issued after the statutory five-year limitation period had expired.
He contended that although the notices were issued beyond the prescribed period, the IRB failed to state the legal basis for the extension, such as fraud, wilful default, or negligence.
"In this case, no reason was given. Had the reason been stated, we would have brought the matter before the Special Commissioners of Income Tax (SCIT)," he said.
Nizamuddin added that his client only became aware that the extension had been granted on the grounds of negligence after the judicial review proceedings had been initiated.
Marina, however, argued that the notices were issued outside the original timeframe because Mukhriz had been granted an extension to furnish documents requested by the IRB.
"At the material time, an extension was granted to prepare the relevant documents, and it would be unfair to use that fact against the respondent," she said.
She submitted that the dispute involved factual issues relating to tax assessments and should therefore be heard by the SCIT, which has the jurisdiction to determine issues concerning statutory time limits.
On Jan 2, 2025, the High Court granted Mukhriz leave to commence the judicial review proceedings.
Mukhriz, 61, filed the application on Dec 20, 2024, naming the Director-General of the Inland Revenue Board, Finance Minister Datuk Seri Anwar Ibrahim, and the Government of Malaysia as the first, second, and third respondents, respectively.
However, on July 24, 2025, the High Court allowed Anwar and the government to be removed as respondents, leaving only the Director-General of the Inland Revenue Board in the proceedings.
In his application, the businessman and former Kedah Menteri Besar sought an order quashing the IRB's decision to issue additional assessment notices for the 2017 to 2019 assessment years, amounting to RM5,020,707.18, on the grounds that the decision was unlawful and unreasonable.
The Parti Pejuang Tanah Air (Pejuang) president also sought a declaration that the penalty imposed on him under Section 113(2) of the Income Tax Act 1967 was null, void, and ultra vires. – Bernama
