Ku Nan may have agreed to pay R40.3m to settle tax suit: Court doc

 

Former federal territories minister Tengku Adnan Tengku Mansor may have settled the Inland Revenue Board’s (IRB) tax suit against him through joint agreement that he only needed to pay RM40.3 million.

This is according to a copy of a draft consent order filed on Sept 30 in the Registry of the High Court in Kuala Lumpur.

Tengku Adnan had on Sept 23 settled an RM57.17 million tax suit filed against him by the IRB. However, his counsel S Saravana Kumar declined to disclose the specific details of the consent order that was recorded by the High Court.

The amount stated in the draft Consent Order, RM40.3 million, is nearly RM17 million less than the RM57.17 million initially sought by IRB when it filed the legal action against Tengku Adnan.

The draft Consent Order states that Tengku Adnan and IRB agree for amendment to the additional assessment notices for the assessment years 2012 to 2017, to come up to a figure of RM40,358,336.61.

The court document states the breakdown of the amended assessment notices as RM53,872 for 2012; RM4,182,392.03 for 2013; RM6,285,357.26 for 2014; RM6,537,624.73 for 2015; RM3,524,071.10 for 2016; and RM19,775,019.49 for 2017.

It states that these assessments, which come up to the total of RM40.3 million, inclusive of penalties, forms the settlement on the tax sought by IRB.

“Parties will discuss within 45 days from the date of the date of the Consent Order on the mode of payment.

“If parties fail to reach agreement on the mode of payment, the settlement (RM40.3 million) will be paid before Dec 31, 2020,” the court document states.

“The plaintiff (IRB) and defendant (Tengku Adnan) hereby withdraw all interlocutory applications made under this civil proceedings and there will be no order to cost,” it adds.

Consent Order bears the signatures

The draft Consent Order, dated Sept 23 and with markings for agreed amendments among others, are marked as “Draft approved as amended”.

The draft Consent Order also bears the signatures of the legal representatives for both the plaintiff and defendant, as well as the signature of the High Court deputy registrar.

Malaysiakini is now attempting to reach out to Tengku Adnan’s legal representative, law firm Messrs Satha & Co, in relation to the possible settlement amount of RM40.3 million in the tax suit.

On Aug 1 last year, online business news portal The Edge reported on the government's tax suit against Tengku Adnan.

According to the statement of claim when the suit was first filed, Tengku Adnan was alleged to owe the government income tax for the year of assessment 2012 until the year of assessment 2017, via a notice of assessment dated March 15, 2019.

IRB also claimed that since Tengku Adnan failed to pay the income tax amount from 2012 to 2017 within 30 days from the date of filing of the notice of assessment, a 10 percent tax increase was meted out.

The plaintiff alleged that Tengku Adnan still did not pay the entire income tax amount along with the 10 percent increase within the 60 days, thus leading to a further five percent tax increase.

The legal action claimed that the income tax payment then owed by Tengku Adnan, inclusive of the increase, amounted to RM57,167,069.35.

The initial breakdown was RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

IRB was, in that legal action, seeking from Tengku Adnan a total sum of RM57,167,069.35; interest on the sum of RM57,167,069.35 at a rate of five percent a year from the date of judgment to the date of realisation; costs and any other relief deemed fit by the court. - Mkini

✍ Credit given to the original owner of this post : ☕ Malaysians Must Know the TRUTH

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