Shafee seeks stay of proceedings in LHDN’s RM9.41 million tax suit

Lawyer Muhammad Shafee Abdullah has filed an application for a stay of proceedings for a suit against him by the Inland Revenue Board (LHDN), 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.

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

He said the outcome of the 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 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 LHDN on June 27, 2019, apart from the existence of special circumstances that warrant the stay.

On Sept 27, LHDN applied for its suit against Shafee to be decided through summary judgment, on 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, LHDN filed the suit against Shafee, seeking payment amounting to RM9.41 million in tax arrears for five assessment years.

Shafee is representing Najib in the case involving the misappropriation of SRC International Sdn Bhd and 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 LHDN.