Former prime minister Muhyiddin Yassin wants Lim Guan Eng to prove in court that the Finance Ministry did not revoke Albukhary Foundation's tax-exempt status.
In his defence statement against Lim's civil suit, the Bersatu president expressed his doubt over the veracity of the ministry’s statement last month saying the ministry nor its officers had revoked the exemption.
"Save that Finance Ministry on March 23, made a press statement stating that neither the former finance minister nor its officer had revoked the tax exemption given to Al-Bukhary Foundation, the defendant does not make any admission to paragraph 28 of the Statement of Claim.
"The defendant denies the veracity of the statement made by the Finance Ministry on March 23 and put the plaintiff to strict proof," said the defence statement filed by Muhyiddin's lawyer yesterday.
Muhyiddin's defence statement was in response to a defamation suit brought by Lim, who claimed that the Pagoh MP had defamed him with libellous accusations.
This comes after the former premier had alleged that Lim was responsible for the Albukhary Foundation - which is headed by tycoon Syed Mokhtar Albukhary - losing its tax-exempt status.
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Last month, Finance Ministry in its statement denied that one of its officers had signed off on revoking the Albukhary Foundation's tax-exempt status.
"The Finance Ministry, whether through the previous minister and or its officers, has never revoked the tax exemption given to the Albukhary Foundation,” it said.
Similarly, Prime Minister Anwar Ibrahim had said in Parliament that there were no records of the DAP chairperson having revoked the foundation's tax exemption status.
On this, Muhyiddin in his defence statement claimed that the prime minister's statements were "wholly irrelevant" and were only a deflection so that Lim would not be held accountable for Inland Revenue Board's (IRB) decision on the issue.
"The reliance by the plaintiff on the statements made by Prime Minister Anwar Ibrahim in Parliament is a deflection and a fait accompli to deflect from the plaintiff’s refusal to be held accountable for the actions of the IRB during his tenure as finance minister," he said.
In justifying his statements against Lim, Muhyiddin told the court that he made the inference and conclusion based on a letter he received from Syed Mokhtar appealing against IRB’s decision to revoke the tax exemption.
According to Muhyiddin, Syed Mokhtar would not have to make such an application had the IRB honoured the tax-exempt status, which had been granted to the foundation when the government was led by Barisan Nasional before the 14th general election.
‘How does Lim not know?’
"The IRB is under the purview of the finance minister. At the material time, the plaintiff was the minister and naturally, the IRB would be under his purview.
"Accordingly, the plaintiff ought to explain the change in circumstances pertaining to the change in position taken by the IRB before and after Pakatan Harapan came into power in 2018.
"The defendant further states he is aware that the finance minister has allowed the appeal by Al-Bukhary Foundation sometime in 2021.
"He is therefore allowed to draw an inference and conclude that the tax exemption was cancelled, or else, there would be no need for approval to be given by the Finance Ministry in 2021," the statement said. - Mkini
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