Shafee seeks stay of proceedings in IRB's RM9.41 mln tax arrears suit

KUALA LUMPUR: Lawyer Tan Sri Muhammad Shafee Abdullah has filed an application for a stay of proceedings for a suit against him, by the Inland Revenue Board (IRB), seeking payment of income tax arrears amounting to RM9.41 million, pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia.

Muhammad Shafee, 69, filed the application on Nov 3, which, among other things, sought an order for the proceedings to be temporarily suspended, pending the outcome of the application filed by the former prime minister, Datuk Seri Seri Najib Abdul Razak, and his son, Datuk Mohd Nazifuddin, regarding the payment of income tax, amounting to RM1.69 billion and RM37.6 million respectively, to the IRB, before the Federal Court.

He said that the outcome of appeals by Najib and his son could affect the suit against him.

The hearing of the applications for leave to appeal by Najib and his son will be heard on Feb 16, 2022.

Among other grounds cited by Muhammad Shafee was that he had filed a notice of appeal by filing Form Q, against additional assessment notices for the assessment years 2011, 2012, 2013, 2014 and 2016, to the IRB on June 27, 2019, apart from the existence of special circumstances that warrant the stay.

On Sept 27, the IRB has applied for its suit against Muhammad Shafee to be decided through summary judgment, on the grounds that the defendant 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 the testimony of witnesses.

On May 6, the IRB filed a suit against Muhammad Shafee, seeking payment amounting to RM9.41 million in tax arrears for five assessment years.

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

He is also facing two charges of receiving RM9.5 million in proceeds from unlawful activities from Najib, and two charges of making false declarations to the IRB.

-- BERNAMA