KUALA LUMPUR – The high court here has ordered Eric Tan Kim Loong, allegedly an associate of fugitive businessman Low Taek Jho, to pay RM67,996,891.87 in income tax to the government after failing to enter an appearance in a suit filed against him by Putrajaya via the Inland Revenue Board (IRB).
Deputy registrar Farah Shuhada Ramli issued the order during case management today.
Tan, also known as “Fat Eric”, was also ordered to pay interest at a rate of 5% per annum from the date of judgment until the date of realisation, as well as costs of RM2,000 to the government.
According to the certificate of absence filed by IRB on April 6, an affidavit on the serving of the writ of summons and statement of claim dated January 15 was served to Tan by substituted service through a newspaper advertisement, made in Berita Harian on March 30, and put up on the premises at an address in Taman Pusat Kepong here on March 29.
The government filed the suit against Tan, seeking payment for tax arrears amounting to RM67,996,891.87 for the assessment years 2010 to 2013, at the high court on January 15.
In the statement of claim, the government said for the assessment years 2010, 2011, 2012 and 2013, the defendant was due to pay income tax amounting to RM2,706,803.84, RM22,090,949.92, RM35,479,911.48 and RM1,538,473.04, respectively, based on the notices of assessment for the said years dated September 30 last year.
The plaintiff said the notices were sent by registered post on November 24 last year to Tan’s last known address in Taman Pusat Kepong, and were never returned.
It said a credit surplus of RM782.02 due to the defendant was utilised and deducted as part of the payment for income tax for the assessment year 2010, leaving an outstanding balance of RM2,706,021.82 for that year.
“As the defendant failed to pay income tax of RM2,706,021.82, RM22,090,949.92, RM35,479,911.48 and RM1,538,473.04 within 30 days of the delivery of the said notices of assessment, as provided for under Section 103 of the Income Tax Act 1967, an increase in tax of 10%, amounting to RM270,602.18, RM2,209,094.99, RM3,547,991.14 and RM153,847.30, respectively, was imposed and added to the overall income tax for the assessment years 2010 until 2013 that remains unpaid.”
To date, it said, the defendant has yet to pay the amount and penalties due, totalling RM67,996.891.87.
As such, the plaintiff is seeking a payment of RM67,996.891.87, 5% interest from the date of judgment until the date of realisation, costs, and other relief deemed fit by the court.
It was reported that Tan is an ally of Low, better known as Jho Low, and purportedly involved in the transaction of billions of ringgit in relation to the 1Malaysia Development Bhd scandal. – Bernama, May 4, 2021
