LHDN obtains summary judgment in RM1.05bil tax suit against Jho Low

GEORGE TOWN :The High Court here has allowed the Inland Revenue Board’s (LHDN) application for a summary judgment to recover more than RM1 billion in tax arrears from fugitive businessman Low Taek Jho.

Judicial commissioner Kenneth Yoong Ken Chinson St James ruled thatthere is neither a triable issue nor some other issue” which requires the case to go to a full trial.

A summary judgment application is a proceeding during which a court decides based on affidavits filed whether there are issues which warrant conducting a full trial.

“I allow LHDN’s application to enter judgment for RM1,053,972,936.58 with interest at 5% per annum from the date of this judgment (Oct 17) to the date of full realisation,” St James said.

LHDN said Low, who is believed to be in Macau or China, failed to submit his tax returns for 2013 and 2014.  The board says he is liable for over RM1.05 billion in taxes for income earned in those years.

It filed the lawsuit last year to recover the sum.

In his defence, Low claimed that he “did not have bank accounts in Malaysia during the years of assessment 2013 and 2014”. He also said he did not conduct any business in Malaysia in those two years.

However, the court rejected his defence, stating that “not having a bank account in Malaysia is not a defence to a tax claim”. It also said “not conducting business in Malaysia is not a defence to this tax claim”.

“I am of the view that I do not need to consider these two averments as part of the defendant’s defence,” St James added.

Interpol Red Notice alerts have been issued against Low, also known as Jho Low, and his associates – Tan Kim Loong, former 1MDB general counsel Loo Ai Swan and former 1MDB executive directors Tang Keng Chee and Geh Choh Heng – over their roles in the 1MDB scandal.

It was revealed during Najib Razak’s SRC International trial that Low left Malaysia on May 29, 2015, while Tan left on May 12, 2015.

Loo, Tang and Geh left the country before the 2018 general election.

LHDN also obtained default judgments against Loo and Tan for a total of RM70.4 million in tax arrears, while Tang was ordered to pay RM6.7 million.

Yesterday, Low and his father Larry were sentenced to prison for contempt by the High Court after they failed to abide by terms in a Mareva injunction.