LHDN must order tax audit on Azam over share purchase, says lawyer

 

The Inland Revenue Board need not wait for anyone to direct them and can start a probe on their own based on the information that has been made public, says a senior lawyer. (Bernama pic)

PETALING JAYA: A senior lawyer has asked the Inland Revenue Board (LHDN) to step in and audit Malaysian Anti-Corruption Commission (MACC) chief Azam Baki to ascertain if he had made the necessary declarations on his shareholdings that are in question now.

SN Nair said what the Securities Commission Malaysia (SC) declared was based on whether he had violated the specific act that showed whether he was in control of his share trading account.

“Now it has been proven that he was in control, therefore he must have financed the purchase.

“As he may have made profits during the period, a LHDN audit will show if he has violated the Income Tax Act.

SN Nair.

“LHDN can take cognisance of matters which are already in the public domain.

“It can invoke this act together with the wide powers under the Anti-Money Laundering Act (Amla) together to facilitate further investigations, just like they always do for many individual taxpayers,” he told FMT.

Nair said LHDN should not be waiting for anyone to direct them to do so, adding that this is a normal course of action that should follow such revelation.

In the past few weeks, there had been many calls from various quarters to investigate Azam in respect of the discovery of millions of ringgit worth of shares and warrants in his shares trading account.

Nair said questions were also raised as to whether he had made the requisite declaration on his shareholding to the chief secretary to the government, as mandated under the public officers’ regulations.

“In all fairness to the SC, it made a finding that the shares were bought by Azam using his own trading account, contrary to his own admission that his brother used his trading account to deal in the said shares.

“While the public outcry and consternation is understandable, one must not lose sight of the principle of due process in our legal system.

“Any action must be conducted and approved within the confines of the law and also there must be valid provisions to empower the investigations,” he added. - FMT