IRB sues Muhyiddin's son-in-law over RM2.59m in unpaid taxes

THE Inland Revenue Board (IRB) has taken Tan Sri Muhyiddin Yassin's son-in-law, Datuk Seri Muhammad Adlan Berhan, to court over an alleged RM2.589 million in unpaid income tax.

According to court documents, the lawsuit stems from a RM3 million composite assessment issued against Adlan for the 2021 year of assessment.

The notice, sent by post on March 1 last year, was not returned to the tax authority, reported The New Straits Times.

The IRB said Adlan had initially paid RM510,000 towards the assessment, leaving an outstanding balance of RM2.49 million.

When Adlan failed to settle the amount within 30 days, a 10 per cent penalty amounting to RM249,000 was imposed.

"Despite making a further payment of RM150,000, Adlan still owed RM2.589 million in unpaid taxes.

"As the defendant has continued to fail in settling the amount due, the plaintiff (IRB) has filed this action to recover the outstanding sum," the statement read.

On Sept 30, it was reported that Adlan's lawyer from the firm Mathews Hun Lachimanan informed the court that their client was negotiating a full settlement and requested a deferment in filing his statement of defence to Oct 29.

The IRB did not object to the request. High Court deputy registrar Norliza Hussin later fixed Dec 8 for further case management.

Adlan, 49, reportedly left the country for New Zealand on May 17, 2023, shortly after Muhyiddin was charged with several corruption offences.

His lawyer, Mansoor Saat, 70, also fled the country four days later and is believed to be in Jakarta. Both men are wanted by the Malaysian Anti-Corruption Commission (MACC) in connection with alleged criminal breach of trust offences linked to the National Enforcement and Registration System (NERS), which was financed through a RM595 million sukuk facility.

The NERS was intended to enhance national security through biometric data collection.

However, investigations revealed that almost RM50 million from temporary work visit pass collections, funds meant for sukuk repayment, were allegedly diverted and misappropriated.

MACC had identified Adlan and Mansoor as suspects in the case.

Last week, the New Straits Times published photos purportedly showing Adlan in the company of Middle Eastern dignitaries.

The report also claimed he had been travelling across the region for leisure, including holidays in Thailand, where he was seen playing golf and visiting a shooting range.

In August 2023, Adlan, through his lawyer, issued a statement denying he was a fugitive, insisting that he was overseas for "business purposes".

Home Minister Datuk Seri Saifuddin Nasution Ismail had recently confirmed that Adlan's passport had been revoked. – October 27, 2025