A day after being sentenced to jail, Jho Low now ordered to pay over RM1 billion to IRB
GEORGETOWN: A day after he was sentenced to jail for contempt of court, Low Taek Jho was ordered to pay over RM1 billion in tax arrears to the Inland Revenue Board (IRB).
The High Court here has allowed IRB’s application for a summary judgment to recover the tax arrears from the fugitive businessman.
In his ruling, Judicial commissioner Kenneth Yoong Ken Chinson St James said that “there 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 cent per annum from the date of this judgment (October 17) to the date of full realisation,” St James said in his ruling.
IRB said Low, who is also known as Jho Low, failed to submit his tax returns for 2013 and 2014 and that he is liable for over RM1.05 billion in taxes for income earned in those years.
The board filed the lawsuit to recover the arrears last year.
In his defence, Low claimed that he “did not have bank accounts in Malaysia during the years of assessment 2013 and 2014” and that he did not conduct any business in Malaysia in those two years.
The court rejected his defence, stating that “not having a bank account in Malaysia and 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, who is believed to be in Macau or China, 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.
IRB 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 Kuala Lumpur High Court after they failed to abide by terms in an asset freezing, or Mareva, injunction orders issued by the court in March.
The IRB said Low, who is also known as Jho Low, failed to submit his tax returns for 2013 and 2014 and that he is liable for over RM1.05 billion in taxes for income earned in those years.
The board filed the lawsuit to recover the arrears last year.
In his defence, Low claimed that he “did not have bank accounts in Malaysia during the years of assessment 2013 and 2014” and that he did not conduct any business in Malaysia in those two years.
The court rejected his defence, stating that “not having a bank account in Malaysia and 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, who is believed to be in Macau or China, 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.
The IRB 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 jail for contempt by the Kuala Lumpur High Court after they failed to abide by terms in an asset freezing, or Mareva, injunction orders issued by the court in March.
NST
