KUALA LUMPUR: The High Court has allowed a leave application by Datuk Seri Abdul Azeez Abdul Rahim to commence judicial review proceedings against the Inland Revenue Board (LHDN).
The Lembaga Tabung Haji (TH) chairman is challenging the LHDN's unilateral cancellation of an agreement on the settlement of RM4.8mil in tax and penalties.
On Wednesday, Justice S. Indra Nehru allowed the leave application after hearing submissions from both parties on grounds that there were merits in the application.
Abdul Azeez's lawyer Datuk Amer Hamzah Arshad told reporters the court agreed there were legal issues in the application.
"So, (now) we can proceed with the substantive judicial review hearing," he said.
Amer Hamzah said the court also allowed an ad interim stay on LHDN that would block any possible subsequent action against Abdul Azeez, pending the hearing of an inter-parte stay application.
"The court has scheduled next Monday (Nov 16) for case management to fix the dates for the inter-parte stay application hearing as well as the substantive judicial review hearing," he added.
Senior Federal Counsel (SFC) Ng Siew Wee appeared for the respondent.
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.
