[UPDATED] Guan Eng never revoked Albukhary Foundation’s tax break: Anwar

KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) has confirmed that Lim Guan Eng (Bagan-PH) did not revoke tax exemptions for the Albukhary Foundation during the DAP chairman’s tenure as finance minister.

Addressing the Dewan Rakyat today, Anwar dismissed accusations levelled against Lim on the matter, noting that Section 44(6) of the Income Tax Act 1967 does not afford powers to a minister over tax exemption matters.

“Based on records from the Finance Ministry, Bagan (Lim) as then finance minister never cancelled any tax exemption previously awarded to the Albukhary Foundation.

“Claims that he (Lim) had done so are untrue because the tax exemption approval for the Albukhary Foundation was only made on February 25, 2021.

“Under the section, absolute power regarding tax exemption issues is given to the Inland Revenue Board (IRB) director-general, not a minister or even the prime minister,” said Anwar.

Lim was finance minister in the short-lived Pakatan Harapan (PH) government led by then prime minister Tun Dr Mahathir Mohamad from May 2018 to February 2020. He was succeeded by Datuk Seri Tengku Zafrul Tengku Abdul Aziz, who served under subsequent prime ministers Tan Sri Muhyiddin Yassin (Pagoh-PN) and Datuk Seri Ismail Sabri Yaakob (Bera-BN).

The Albukhary Foundation is a group formed by billionaire philanthropist Tan Sri Syed Mokhtar Albukhary, whom Muhyiddin has repeatedly described as a close friend.  

Anwar said his government’s approach to dealing with tax-exempt companies is “different” from that of past administrations. He said that his focus is on alleviating the burdens shouldered by financially struggling citizens, not political gains. 

“Previously, the government would ask big tax-exempt companies to transfer funds as donations to parties or individuals. 

“I have spoken with Syed Mokthar and asked that donations be directly given to rice farmers. Between parties and rice farmers, I choose to give aid to our farmers,” he said. 

It was previously reported that Padiberas Nasional Bhd, or Bernas, controlled by Syed Mokthar, would share 30% of its profits from rice imports with padi farmers, besides giving RM60 million to rice growers nationwide. 

Anwar added that he would rather not elaborate on several “out of the ordinary” tax-exemption matters discovered in past Finance Ministry records as investigations into these are currently being carried out by the Malaysian Anti-Corruption Commission (MACC).

Anwar, who is PH chairman, was responding to questions posed by Cha Kee Chin (Rasah-PH) seeking the government’s explanation on allegations previously aired by Muhyiddin that Lim had revoked the foundation’s tax-exempt status. 

Following his arrest by the MACC earlier this month, the Perikatan Nasional chairman had claimed that the IRB, which falls under the Finance Ministry, had during Lim’s ministerial tenure informed the Albukhary Foundation that its tax exemption was cancelled after being approved during Barisan Nasional’s time in federal power. 

Muhyiddin also said when he became prime minister after the fall of the PH administration, Syed Mokhtar had appealed to him to lift the cancellation.

Lim has since sought an apology and compensation from Muhyiddin for the supposedly defamatory statements, warning that legal action would be taken if the latter refuses to withdraw his accusations. 

The decision to take legal action, Lim said, was to rebut the dangerous implications of Muhyiddin’s statement that can inflame and provoke unhappiness over the claim that a non-Muslim minister had revoked the tax-exempt status of a Muslim charitable organisation.

The Albukhary Foundation’s tax issues were disclosed after Muhyiddin was slapped with four charges of abuse of power involving RM232.5 million and two charges of receiving RM195 million in illicit funds. 

Last week, the Bersatu president was also hit with an additional charge of money laundering involving RM5 million. – The Vibes, March 21, 2023