PUTRAJAYA (Aug 28): A three-member Court of Appeal bench on Monday (Aug 28) unanimously granted a stay application by Shell Gas Holdings (M) Ltd from paying RM883,693,017 in tax for the assessment year of 2017 to the Inland Revenue Board (IRB), pending the hearing of its appeal for leave.

The bench, which was led by Datuk Lee Swee Seng, granted the stay sought by Shell Holdings, noting that there were special circumstances to warrant a stay, as the amount represents a huge sum, and the company has a good tax payment record.

The other judges who heard the application were Datuk Che Mohd Ruzima Ghazali and Datuk Azizul Azmi Adnan.

Shell Gas had filed a judicial review application against the finance minister in relation to a tax assessment raised for 2017, after the IRB ruled that the gains from its disposal of 15% shares owned by Shell Gas in Malaysia LNG Tiga Sdn Bhd were subject to income tax.

Shell Gas contends that the gains were capital receipt, and thus should not be subjected to income tax. This is especially so given that Shell Gas had owned the shares for about 22 years as an investment.

However, the Shah Alam High Court dismissed Shell Gas' application for leave on July 3, from hearing the merits of the application and refused stay. This resulted in the stay application sought in the Court of Appeal by the company on Monday.

Following the granting of the stay, the bench fixed Oct 2 for case management of the appeal.

Shell Gas was represented by counsel S Saravana Kumar and Felicia Wong from Rosli Dahlan Saravana Partnership, while the Ministry of Finance was represented by federal counsel V Krishna Priya from the Attorney General's Chambers.