THE Shah Alam High Court refused to grant Toh Puan Na'imah Abdul Khalid , the wife of former finance minister Tun Daim Zainuddin, an interim stay of an order compelling her to pay tax arrears of RM313.8 million to the Inland Revenue Board (LHDN).
Judge Dr Shahnaz Sulaiman, in dismissing the application, said there were no exceptional circumstances in this case.
Na’imah, 67, was seeking an interim stay, pending a judicial review application to quash the IRB order dated Aug 13, deeming it as ultra vires, illegal, void, unlawful and in excess of authority, irrational and unreasonable.
She argued that special circumstances justified an interim stay, including that her judicial review application would be rendered nugatory if the stay was refused, the large tax sum raised by the respondent, and the irreparable damage and undue hardship she would face without the stay.
Shahnaz said Section 103(1) of the Income Tax Act (ITA) 1967 stipulates that all tax assessed shall be due and payable on the due date whether an appeal is pending before the special commissioners of income tax or not.
She noted the Federal Court had previously ruled that under the Act, taxes must be paid first and any tax collected from Naimah can be refunded by LHDN if an appeal is successful.
In her affidavit in support, Na'imah claimed the assessment raised against her was following over RM700 million in alleged unreported income in 2018, which she said was based solely on baseless accusations.
She claimed the entire tax audit process appeared to be undertaken maliciously as the respondent failed to follow the proper tax audit guidelines and it is unlawful, invalid, null and void and/or in excess of authority.
She also claimed the respondent had failed to pay out to her RM3.807 billion in tax refunds for 2017 and prior.
Na’imah and Daim, 85, are also facing separate criminal court cases linked to the couple’s alleged failure to abide by MACC notices to declare their assets.
Lawyer DP Naban and Darshini Sharma represented Naimah, while Ahmad Isyak Hassan acted for LHDN. - October 18, 2024
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