Tuesday, January 18, 2022

Jho Low-ally Eric Tan ordered to pay income tax of RM68 million

He was also ordered to pay interest at a rate of 5% per annum from the date of judgment until the date of realisation, and costs of RM2,000 to the government.

Other News

The High Court in Kuala Lumpur has ordered Eric Tan Kim Loong, alleged to be an associate of fugitive businessman Low Taek Jho or Jho Low, to pay income tax of RM67,996,891.87 to the government after failing to enter an appearance in a suit filed against him by the government through the Inland Revenue Board (LHDN).

Deputy registrar Farah Shuhada Ramli issued the order during case management today.

Tan was also ordered to pay interest at a rate of 5% per annum from the date of judgment until the date of realisation, and costs of RM2,000 to the government.

According to the certificate of absence filed by LHDN on April 6, an affidavit on the serving of the writ of summons and statement of claims dated Jan 15 was served to Tan by substituted service through a newspaper advertisement, which was made in Berita Harian on March 30 and pasted at the premise of an address in Taman Pusat Kepong on March 29.

The government filed the suit against Tan at the High Court on Jan 15, seeking payment of tax arrears amounting to RM67,996,891.87 for assessment years 2010 to 2013.

In the statement of claim, the government alleged that for the years of assessment 2010, 2011, 2012 and 2013, the defendant was due to pay income tax of RM2,706,803.84, RM22,090,949.92, RM35,479,911.48 and RM1,538,473.04 based on the notice of assessment for the said years, dated Sept 30, 2020.

The plaintiff claImed that the notices of assessment were sent by registered post to the defendant on Nov 24, 2020, to his last known address in Taman Pusat Kepong, and were never returned.

The plaintiff further stated that credit surplus of RM782.02 due to the defendant was utilised and deducted as part payment of income tax for the year of assessment 2010, leaving an outstanding balance of RM2,706,021.82 for that tax assessment year.

“As the defendant failed to pay income tax of RM2,706,021.82, RM22,090,949.92, RM35,479,911.48 and RM1,538,473.04 within 30 days of the delivery of the said notices of assessment to him, as provided for under Section 103 of the Income Tax Act 1967, an increase in tax of 10% respectively amounting to RM270,602.18, RM2,209,094.99, RM3,547,991.14 and RM153,847.30 was imposed and added to the overall income tax for the years of assessment 2010 until 2013 that still remain unpaid,” said the plaintiff.

The plaintiff claimed that to date, the defendant had yet to pay the amount and penalties due, totalling RM67,996.891.87.

The plaintiff is seeking that the defendant pay RM67,996.891.87, 5% interest from the date of judgment until the realisation date, costs and other relief deemed fit by the court.

Prior to this, the media had reported that Tan was a close ally of Jho Low and was also allegedly involved in billions of ringgit in transactions relating to the 1MDB scandal.

Follow us on Telegram for the latest updates: https://t.me/malaysianow

Subscribe to our newsletter

To be updated with all the latest news and analyses.

Related Articles