KUALA LUMPUR: The Attorney General's Chambers (AGC) has objected to former Lembaga Tabung Haji (TH) chairman Datuk Seri Abdul Azeez Abdul Rahim's (pic) application for leave to commence judicial review proceedings against the Inland Revenue Board (LHDN).
The application is over LHDN's claimed unilateral cancellation of an agreement on the settlement of RM4.8mil in tax and penalties.
Senior Federal Counsel (SFC) Ng Siew Wee said Thursday (Oct 8) that the application was premature as the impugned letter issued by LHDN to the former Baling MP on Aug 7 stated that a new tax computation would be issued in due course and did not raise a fresh assessment or demand payment of any quantified sum.
Ng said the impugned letter stated that a review of the case had uncovered new findings and facts concerning income allegedly omitted from the agreement, resulting in the cancellation of the agreement and consequently, the composite assessment with a new tax computation to be issued in due course.
"Azeez was not directed by the impugned letter to pay any additional tax. No amount of additional tax was determined. No fresh assessment had been issued at the time the present application was commenced," she said during the hearing of the leave application by Azeez before Justice S. Indra Nehru at the High Court here.
Lawyers Nicholas Mark Pereira, Datuk Amer Hamzah Arshad and Tan Sri Dzulkifli Ahmad appeared for Abdul Azeez, while SFC Ng appeared for the AGC, together with LHDN senior revenue counsel Marina Ibrahim.
In his application for leave to commence judicial review proceedings filed on Sept 6, Azeez is seeking to quash LHDN's decision to unilaterally cancel the agreement dated Feb 9, 2022, and the subsequent notice of composite assessment dated March 22, 2022, involving the assessment years 2011 to 2020.
Among others, Azeez is contending that the agreement and subsequent composite assessment notice is final and conclusive per the law and is also asking for a court order compelling LHDN to abide by said agreement.
Azeez claimed that LHDN had conducted a tax investigation against him in late 2021 or early 2022, which resulted in the agreement dated Feb 9, 2022.
He said under the agreement, both parties had agreed on the settlement of RM4.8mil in taxes and penalties for the assessment years 2011 to 2020, adding that he had settled the amount through instalments as agreed.
Meanwhile, Nicholas submitted that the agreement was a written statutory agreement made pursuant to the power under Section 96A of the Income Tax Act 1967 and subsequently given effect through a formal composite assessment.
"Our position is that under Section 96A(6) of the Income Tax Act, once a composite assessment is made, it is final, conclusive and cannot simply be cancelled.
"This was not some letter written by a junior officer. It was a written statutory agreement, pursuant to power under the Act, which was then given effect by a formal assessment. It was signed by the respondent himself, the director-general of LHDN at that time," he said.
Justice Indra fixed Nov 11 to deliver her decision on the leave application. – Bernama
