KUALA LUMPUR – Did former minister Datuk Seri Tengku Adnan Tengku Mansor agree to pay RM40.36 million to settle with the Inland Revenue Board (IRB) over unpaid taxes – RM17 million less than what he was initially sued for?
This seems to be the case based on court documents dated September 23, 2020 obtained by The Vibes, which was filed at the Kuala Lumpur High Court last Wednesday.
According to the settlement document (known as a consent order), it stated: “The total revised additional taxes as stated above amounts to RM40,358,336.61 is inclusive of penalties, which form the tax settlement sum and shall herein be referred hereinafter as ‘Settlement’”.
Based on the document, Tengku Adnan, who is the former federal territories minister, has agreed to pay RM19.78 million in settlement for the 2017 year of assessment, RM3.52 million (2016), RM6.54 million (2015), RM6.29 million (2014), RM 4.18 million (2013), RM53,872 (2012).
It was also stated that the parties will discuss the mode of payment for the settlement sum within 45 days from the date of the consent order.
If an agreement on the mode of payment is not reached, the total amount must be paid by Tengku Adnan by December 31.
When contacted, one of the law firms representing Tengku Adnan, who is Putrajaya MP, confirmed the settlement amount.
The government via IRB sued Tengku Adnan on July 24 last year for RM57.17 million over unpaid taxes for the assessment years 2012 to 2017.
The media have previously reported that the parties reached a settlement on September 23 this year.
Tengku Adnan’s lawyer, S. Saravana Kumar had at the time declined to disclose the terms of the settlement, including the amount to be paid.
RM14 mil was initially proposed as settlement
Based on earlier affidavits filed on September 1, it was understood that Tengku Adnan’s lawyers had initially proposed a RM14.77 million settlement sum to IRB, just 25% of the original RM57.17 million he supposedly owed in unpaid taxes.
In a letter dated February 6, 2020, which was attached to the mentioned affidavit, the RM14.77 million proposal was addressed to IRB Director-General Datuk Seri Sabin Samitah.
The proposal also suggested that several assets amounting to RM55.9 million be regarded as third party loans.
It was then understood through a later correspondence by Tengku Adnan’s lawyers, attached to the same affidavit, the IRB was not able to accept his proposal to include certain assets as third party loans.
The same correspondence then suggested Tengku Adnan agreed to treat those assets as his own additional assets and pay the additional taxes. – The Vibes, October 5, 2020
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