Summary judgment entered against Shafee for tax arrears

December 16, 2023

Summary judgment entered against Shafee for tax arrears

KUALA LUMPUR: The High Court here has allowed the Inland Revenue Board (LHDN) to enter summary judgment against lawyer Shafee Abdullah for tax arrears over a period of five years between 2011 and 2016.

However, the actual sum that the government will be able to recover from Shafee will only be known on Monday.

Judicial commissioner Roz Mawar Rozain held that, based on affidavits, Shafee had no defence to the claim and that there were no issues which warranted the testimony of witnesses at a full trial.

In granting the application, Roz Mawar said she was bound by an earlier Federal Court decision in former prime minister Najib Razak’s RM1.69 billion tax arrears case.

In Najib’s case, the apex court held that taxpayers must settle all outstanding sums assessed to be due before lodging an appeal to the special commissioners over the quantum of assessment made by the LHDN.

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Earlier, senior revenue counsel Norhisham Ahmad had told the court that LHDN intended to amend the sum claimed in its suit.

Fellow lawyer Rajan Navaratnam, appearing for Shafee, told the court that both parties will prepare a draft court order specifying the exact amount of the judgment sum by Monday.

In 2021, LHDN filed a suit against Shafee to recover more than RM9.41 million in tax arrears.

They alleged that Shafee owed the government the sum for unpaid tax over five years – RM434,326.17 for 2011, RM978,854.11 (2012), RM3.58 million (2013), RM1.73 million (2014) and RM1.82 million (2016).

LHDN said notices of assessments for the five years were mailed to Shafee’s last known address here on May 31, 2019, and were never returned to the department.