Daim's wife challenges RM313m tax assessment

Former finance minister Daim Zainuddin’s wife has turned to the courts to quash the authorities’ assessment that she owed over RM313 million to the taxman.

In her judicial review leave application, Na’imah Abdul Khalid claimed that the Inland Revenue Board’s (IRB) assessment for the year 2018 was erroneous and baseless via the addition of RM700 million in alleged undeclared income.

The applicant claimed that the respondent’s assessment notice dated Aug 13 this year rests solely on baseless accusations and that the audit appeared malicious.

“The respondent’s decision has arbitrarily created a substantial tax liability amounting to RM313,820,336.13 when in the first place, the respondent’s conduct in raising the impugned assessment is wrongfully imposed on me and the said sum is large and burdensome.

“It is unreasonable to expect an individual to immediately procure such a large sum within 30 days,” contended Na’imah in her affidavit filed at the Shah Alam High Court on Aug 19.

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The 66-year-old claimed that the IRB also failed to pay out RM3.807 billion in tax refunds owed to her for the assessment years 2017 and prior.

“This honourable court should bear in mind the possibility of arbitrary or incorrect assessments, brought about by fallible officers who have to fulfil the collection of certain publicly declared targeted amount of taxes and whose assessments, as a result, may be influenced by the target to be achieved rather than the correctness of the assessment.

“With respect, the prime minister had publicly declared that the income tax collection target increased to RM197 billion this year,” Na’imah contended.

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The civil action is set for case management before the High Court on Sept 3.

Na’imah and Daim, 85, are also facing separate criminal court cases linked to the couple’s alleged failure to abide by MACC notices to declare their assets.

Law firm Rosli Dahlan Saravana Partnership is acting for Na’imah in the tax challenge. - Mkini