SHAH ALAM (June 30): The Shah Alam High Court earlier this month overturned a seven-year travel ban imposed by the Royal Malaysian Customs Department on three former directors of a cable company over alleged unpaid GST liabilities amounting to RM1.45 million.

Judge Evawani Farisyta Mohammad ruled that the Customs Department could not impose the travel ban solely because the company, Federal Power Sdn Bhd, had unpaid GST liabilities. She said the law required evidence that the former directors were likely to leave Malaysia without paying the tax.

The court found no flight risk, noting that the three former directors have homes, families, businesses and strong ties in Malaysia.

She also found that the trio had engaged the Customs Department over the dispute and returned to Malaysia after an interim relief was granted by the court upon their application.

The judge, referring to an earlier decision, observed that travel bans should not be imposed “as a matter of course” and that the personal liberty to travel abroad should not be curtailed lightly.

Furthermore, she found that the trio ceased to be directors in August 2016, after evidence showed that they had resigned and ended their involvement in the company following a share sale transaction.

However, the relevant invoice giving rise to the GST liability was issued only after the applicants had ceased to be directors, while the bill of demand related to a later taxable period.

In setting aside the travel restrictions, the court ordered the Customs Department to pay RM10,000 costs to the former directors.

The trio filed their judicial review application in 2024, challenging the travel ban imposed on them.

The three former directors were represented by counsels Jeff Sum and Tan Wen Ying from Messrs Wong & Partners, while federal counsel Dzaqiff Shauqi appeared for the Customs Department.