Gov't explains why IRB allowed Ku Nan to settle tax arrears suit for RM40m

 

The government has offered a general explanation as to why former federal territories minister Tengku Adnan Tengku Mansor could settle his tax arrears suit with the Inland Revenue Board (IRB) by paying RM40.3 million, nearly RM17 million less than initially sought by the Income Tax Department.

Finance Minister Tengku Zafrul Abdul Aziz said the IRB can impose an additional tax on any taxpayer after it conducted a tax audit or investigation.

The taxpayer can appeal to the Special Commissioners of Income Tax (PKCP) if they are not satisfied over the additional tax.

"However, before a case is presented to the PKCP, the taxpayer must be given an opportunity to submit additional evidence to the IRB for the purpose of reviewing the disputed tax," the minister told DAP Labis MP Pang Hok Liong in a recent parliamentary reply.

"A tax reduction will be given after IRB scrutinises all documents submitted by the taxpayer during the appeal process," he said.

Tengku Zafrul also noted that income tax payment must be made by the taxpayer within 30 days upon receiving the assessment notice and failing to do so will result in an additional 10 percent penalty of the outstanding tax.

Without naming Tengku Adnan, Pang had asked why the IRB agreed to reduce the income tax sought from a parliamentarian to RM40.3 million from RM57.17 million.

"Has the IRB received the full payment of RM40.3 million?" asked Pang additionally.

In his reply, Tengku Zafrul also did not name Tengku Adnan citing the confidentiality provision under the Income Tax Act 1967.

In August 2019, the IRB filed an RMRM57.17 million suit for unpaid taxes from 2012 to 2017 against Tengku Adnan. On Sept 23, 2020, he was reported to have settled the suit with IRB.

A court document showed that Tengku Adnan, who is also Putrajaya MP, settled the suit for RM40.3 million.

The former minister was in the news again recently when he was found guilty last Dec 21 of corruption and sentenced to 12 months' jail and a RM2 million fine. - Mkini