Monday, September 20, 2021

Ku Nan, LHDN to settle RM57 million income tax suit

The judge has fixed Sept 23 to hear LHDN's application for a summary judgment as well as Tengku Adnan Tengku Mansor's request for a stay of proceedings.

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Tengku Adnan Tengku Mansor and the Inland Revenue Board (LHDN) are in the process of settling the suit to recover over RM57.17 million in unpaid income tax owed by the former federal territories minister from 2012 to 2017.

LHDN’s deputy solicitor Hazlina Hussain informed High Court judge Azimah Omar of the matter today.

“This is a settlement offer by the defendant (Tengku Adnan),” she said.

“Both parties are working to resolve the case. As the issues are complex, the parties will be taking a bit of time to settle the case.”

The court was scheduled to hear LHDN’s application for a summary judgment against Tengku Adnan, popularly known as Ku Nan, and his application for a stay of proceedings.

A summary judgement is when the court decides a case through arguments without hearing witness statements during trial.

Tengku Adnan’s counsel Rosli Dahlan also asked for an adjournment of the hearing as they were in the settlement process.

“The parties have reached a settlement on the quantum but the mode of the settlement has yet to be decided,” he said.

However, Hazlina told the court that LHDN had yet to decide on the quantum, especially on the amount of penalty involved.

Azimah fixed Sept 23 to hear LHDN’s application for a summary judgment as well as Tengku Adnan’s request for a stay of proceedings.

“I am giving two weeks,” she said.

“if there is no settlement, I have to proceed with the case. This case has gone on long enough.”

The government through LHDN filed the suit on July 24 last year after accusing Tengku Adnan of owing income tax for the assessment years 2012 to 2017 as stated in the assessment notice dated March 15, 2019.

LHDN accused the Putrajaya MP of failing to pay the outstanding income tax with 10% increase totalling RM57,167,069.35.

The sum comprised RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

The plaintiff is demanding a total of RM57,167,069.35 with interest of 5% per annum on the total sum from the date of judgment until the date of realisation.

It is also demanding costs and other relief deemed fit by the court.

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