KUALA LUMPUR (Dec 21): The Inland Revenue Board (IRB) has ordered senior lawyer Tan Sri Muhammad Shafee Abdullah to pay RM5.53 million as part of a summary judgment entered against him in his income tax case.
During proceedings at the High Court here, Judicial Commissioner (JC) Roz Mawar Rozain was informed by IRB’s senior revenue counsel Norhisham Ahmad that the amount reached after calculations was a sum of RM5,529,577.70.
Shafee’s unpaid taxes, according to the IRB, was approximately RM9.414 million.
In May 2021, the IRB filed the suit against Shafee over five years' worth of tax arrears — from 2011 to 2014, and 2016.
The board said that it had sent additional assessment notices to Shafee between May 27 and May 30, 2019 for the amounts of RM621,191.85 (2011), RM978,854.11 (2012), RM3.58 million (2013), RM1.74 million (2014) and RM1.83 million (2016), but they remained unpaid.
The JC also awarded RM10,000 in costs to the IRB.
Shafee's son Muhammad Farhan Shafee appeared for him in court.
Previously, Shafee had denied the IRB's claim relating to the notices of additional assessment for the period, saying it was inaccurate, unlawful and tainted with mala fide (in bad faith). He added that he had submitted a revised capital statement as final consideration for tax settlement.
In her summary judgment, Roz Mawar ruled that she was bound by the principle of stare decisis following the Federal Court’s recent decision in former prime minister Datuk Seri Najib Razak’s tax case.
She said the principle was applicable to ensure stability in the law.
Stare decisis is a Latin term that means “to stand by things decided”.
Roz Mawar added that the court was bound by the principle as it plays a crucial role, with Najib’s case having considered the same argument brought forward by the parties in this case, and the apex court arriving at a decision on the former PM's case two months ago.
Citing Najib’s case, the JC said the court is not abrogating its judicial power in not wanting to hear the case, when tax is considered chargeable on a person.
Roz Mawar said the amount not recovered from Shafee has become a debt owed to the government as the payment period had lapsed, and the decision to have a summary judgement was to avoid a full-blown trial.
She added the provision in the Income Tax Act (ITA) has been satisfied that the time prescribed for Shafee to pay had lapsed.
Hence, the court, as in Najib’s case decided by the Federal Court, ruled that it did not offend Article 121 regarding the court not having jurisdiction to hear the matter.
“In the circumstances, the summary judgement is entered on the defendant,” Roz Mawar ruled earlier this month.
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