Zahid on offshore accounts: 'Do not assume I was trying to evade tax'

PARLIAMENT | Ahmad Zahid Hamidi (BN-Bagan Datuk) said he was not trying to evade tax after being questioned about his alleged links to offshore accounts as exposed in the controversial Pandora Papers.

The Umno president was debating the 12th Malaysian Plan (12MP) in the Dewan Rakyat when he was interrupted by RSN Rayer (Harapan-Jelutong).

Rayer asked him to verify whether he has offshore accounts based in the British Virgin Island (BVI) and whether he intends to bring the money back to Malaysia.

“Please investigate what Jelutong brought up,” Zahid said in response.

He explained that he was the chief executive officer (CEO) of a listed company at the time, which had investments in a prominent country. He did not name the country.

Zahid said the company had received concessions from that country to carry out a project, but the profits could not be brought out of the country.

Instead, he added, they were asked to re-invest in the country.

“Surely, as a listed company, it would’ve wanted to give back the dividends to its shareholders... but now the company does not exist anymore.

“So do not assume that I was trying to run away from being taxed,” Zahid said.

'We can talk about this in the canteen'

Though Rayer attempted to question him further, he was shot down by Dewan Rakyat Speaker Azhar Azizan Harun who said Zahid did not allow any more interruptions.

Jelutong MP RSN Rayer 

Zahid then tried to placate Rayer by telling him they could discuss this matter further in the canteen later.

“We can talk about this in the canteen later.

“Maybe he (Rayer) is not that familiar with the corporate world, he is only familiar with legal matters.

“Corporate restructuring, mergers, takeovers, please learn from me,” Zahid said.

The Pandora Papers leak, which was obtained by the International Consortium of Investigative Journalists (ICIJ), also revealed the offshore financial assets and business associates of former finance minister Daim Zainuddin. 

Aside from Daim and Zahid, three other prominent individuals were also named in the Pandora Papers for owning offshore accounts. 

They were Finance Minister Tengku Zafrul Abdul Aziz, his deputy minister Yamani Hafez Musa and Selayang MP William Leong.

However, owning offshore accounts, companies or trusts does not necessarily mean one is engaged in anything illegal, nor is it illegal to set up offshore entities. - Mkini