KUALA LUMPUR (Oct 8): Former Lembaga Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim has taken the Inland Revenue Board (IRB) to court for allegedly unilaterally cancelling a prior agreement over the settled payment of over RM4 million in taxes and penalties.
In the application for leave (permission) to begin judicial proceedings dated Sept 6, Azeez is seeking to quash the IRB's decision to single-handedly cancel their Feb 9, 2022 agreement and subsequent notice of composite assessment dated March 22, 2022 for the assessment years of 2011 to 2020.
Among others, the former Baling parliamentarian is contending that the agreement and subsequent composite assessment notice is final and conclusive, per the law, and is also asking for a court order compelling IRB to abide by the agreement.
The Attorney General's Chambers (AGC) is objecting to the leave application, on the grounds that investigations are ongoing and that the legal challenge is premature.
They contend that for now, Azeez is not required to pay any fresh assessment sum, and that the legal challenge hinges on his presumption of the tax agency's future move.
High Court judge Indra Nehru Savandiah heard the leave application on Thursday and set Nov 11 to deliver her decision.
Azeez's team of lawyers were led by lawyers Nicholas Mark Pereira, Datuk Amer Hamzah Arshad, and Tan Sri Dzulkifli Ahmad. Senior federal counsel (SFC) Ng Siew Wee appeared for the AGC, while senior revenue counsel Marina Ibrahim appeared for the IRB.
Azeez says he settled RM4.8 mil in taxes and penalties for assessment years 2011 till 2020
In court documents seen by The Edge, Azeez claims that in late 2021 or early 2022, the IRB had conducted tax investigations on the former Baling parliamentarian, which resulted in the Feb 9, 2022 agreement.
In the agreement, he said that parties had agreed for him to pay RM4.8 million in taxes and penalties for assessment years 2011 to 2020, adding that he had settled the payment via instalments as agreed upon.
"Although having fulfilled his obligations under the agreement and the composite assessment, the applicant received a letter dated Aug 7, 2026, issued by the Strategic Compliance Section Negeri Sembilan, Inland Revenue Board of Malaysia ("LHDN, NS"), on behalf of the respondent, containing the impugned decision to unilaterally cancel the agreement and composite assessment.
"Along with the letter, the applicant received notices and notifications issued by [the IRB] requiring the applicant to attend an interview and provide information relating to YA (year of assessment) 2014 to 2025," Azeez said.
He added that he had also received additional notices from the IRB linked to the Anti Money Laundering Act.
AGC says Azeez is anticipating a possibility that he will have to pay additional taxes
In objecting to the leave application, SFC Ng among others contended that Azeez's complaint is grounded in the "anticipated possibility" that the cancellation of the agreement and composite assessment will be followed by a new or additional assessment and consequential enforcement action.
"The Applicant was not directed by the impugned letter to pay any additional tax. No amount of additional tax was determined. No fresh assessment had been issued at the time the present application was commenced.
"The distinction is important. The cancellation communicated in the Impugned Letter may be an administrative act. However, the question of whether that act has presently crystallised an enforceable tax liability is a separate matter," Ng said in her submissions.
Ng added that the fresh notices from the IRB are together information and investigative measures, which in itself do not determine Azeez's tax liability.
Azeez has been in and out of the courts in recent weeks. As on Sept 9, he was charged with graft relating to his previous post in the pilgrims’ fund board and construction company Putrajaya Perdana Bhd. He has claimed trial.
He was also remanded for several days to assist in investigations linked to fraudulent hibah (transfer of ownership of property or assets as a gift).