IRB sues two other Jho Low's allies over income tax arrears

The writs of summons against Casey Tang Keng Chee, 56, and Jasmine Loo Ai Swan, 43, demanding them to pay their income tax arrears of RM6.8 million and RM2.5 million respectively, were filed at the High Court here on Dec 4, 2020, and Jan 8, 2021.

The cases came up for e-Review today and the case management for the summons against Tang, who is former executive director of 1Malaysia Development Berhad (1MDB), has been set for March 8, while the one against Loo, the former lawyer of 1MDB, on Feb 18.

In the statement of claims against Tang, the Government of Malaysia as the plaintiff alleged that for the Years of Assessment from 2009 to 2017, the defendant was due to pay RM260,560.26, RM473,004.48, RM1,600,810.12, RM257,694.20, RM1,074,455.28, RM1,428,296.28, RM701,285.00, RM310,502.16 and RM57,866.40 based on the Notice of Assessment for the said years, dated Sept 30, 2020.

The plaintiff claimed that notices of assessment were sent by registered mail to the defendant on Oct 6, 2020, to his last known address at Taman Sri Endah here, and were received by the plaintiff based on the signed Acknowledgement Receipt (AR) card.

The plaintiff further stated that credit surplus of RM972.00 due to the defendant was utilised and deducted as part payment of income tax for the Year of Assessment 2009, leaving an outstanding balance of RM259,588.26 for that tax assessment year.

The plaintiff claimed that as the defendant failed to pay income tax within 30 days of the delivery of the said Notices of Assessment to him (the defendant), as provided for under Section 103 of the Income Tax Act 1967, an increase in tax of 10 per cent was imposed and the defendant is required to pay the overall income tax for the Years of Assessment 2009 until 2017 totalling RM6,779,852.36, as well as five per cent interest from the date of judgment until the realisation date, costs and other relief deemed fit by the court.

Meanwhile, in the statement of claims against Loo, the plaintiff alleged that for the Years of Assessment 2012, 2014 and 2016, the defendant was due to pay RM1,495,366.08, RM571,979.72 and RM75,292.96 based on the Notice of Assessment for the said years, dated Oct 19, 2020.

The plaintiff claimed that notices of assessment were sent by registered mail to the defendant on Nov 18 2020, to her last known address in Damansara Heights here, which was known by the plaintiff at the time, and were never returned to the plaintiff.

“The defendant also failed to submit the Individual Return Forms under Section 77 of the Income Tax Act 1967 for the Assessment Years 2017 and 2018 to the plaintiff within the stipulated time period on or before April 30, 2018, and April 30, 2019.

“Assessments of RM76,510.72 and RM50,062.40 (including penalties) for 2017 and 2018 have been raised in the Notices of Assessment dated Oct 19, 2020, sent to the defendant’s last known address, which were never returned to the plaintiff,” it said.

The plaintiff said as the defendant failed to pay income tax within 30 days of the delivery of the said Notices of Assessment to her, an increase in tax of 10 per cent was imposed and the defendant is required to pay the total tax arrears of RM2,496,133.05 as well as five per cent interest from the date of judgment until the realisation date, costs and other relief deemed fit by the court.

On Jan 15, the Government of Malaysia also filed a suit against an ally to Jho Low, known as Eric Tan Kim Loong, demanding him to pay income tax totalling RM68 million.