IRB applies to strike out Shafee's counterclaim

KUALA LUMPUR: The Inland Revenue Board (IRB) has filed an application to strike out a counterclaim by lawyer Tan Sri Muhammad Shafee Abdullah in relation to the suit filed by the IRB seeking payment amounting to RM9.41 million in tax arrears.

The application was filed by the IRB on behalf of the government as the plaintiff on Sept 28 on the grounds that the counterclaim was an abuse of court process.

The IRB claimed that the counterclaim was aimed at disputing the assessment that had been raised with a basis and in a valid and orderly manner based on the Income Tax Act 1967.

"Any dispute as to the tax assessment such as whether it is incorrect, excessive or invalid should be heard before the Special Commissioners of Income Tax (PKCP)," according to the IRB in the application.

Muhammad Shafee, who filed a counterclaim on Aug 11, claimed that the tax suit against him was inaccurate and unlawful as well as an attempt to prevent him from continuing to represent former Prime Minister Datuk Seri Najib Tun Razak.

On Sept 27, IRB has applied for its suit against Muhammad Shafee to be decided through summary judgment on the grounds that the defendant (Muhammad Shafee) had failed to pay the income tax arrears amounting to RM9,414,708.32 within the stipulated time.

A summary judgement is where a court decides a case without hearing testimony of witnesses.

The writ of summons and the statement of claim were filed on May 6 at the High Court, with Muhammad Shafee, 69, named as the defendant.

The government claimed that an additional assessment amounting to RM621,291.85, RM978,854.11, RM3,581,500, RM1,735,124.03 and RM1,826,557,87 was made for the Assessment Year of 2011, 2012, 2013, 2014, 2016, respectively, through a notice, dated May 27, 2019, which was sent to the defendant.

It claimed that until now the defendant still failed to pay the amount.

Muhammad Shafee is the lawyer representing Najib in the case involving misappropriation of SRC International Sdn Bhd and 1Malaysia Development Berhad (1MDB) funds.

Muhammad Shafee is facing two charges with receiving RM9.5 million in proceeds from unlawful activities from Najib and two charges with making false declarations to the IRB.

The income tax suit is fixed for case management before High Court deputy registrar Syeela Marlina Uttaman on Nov 5.

-- BERNAMA