Sept 28 decision on Shafee's bid to stay LHDN suit

The Kuala Lumpur High Court will decide on Sept 28 an application by lawyer Muhammad Shafee Abdullah to stay the proceeding of a suit filed against him by the Inland Revenue Board (LHDN) for failing to pay income tax arrears amounting to RM9.41 million.

Shafee applied to stay the proceeding pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia.

Lawyer Wee Yeong Kang, representing Shafee, said judicial commissioner Roz Mawar Rozain set the date after hearing submissions by both parties during an online proceeding today.

"The decision on the application will be delivered online at 11am," he said when contacted by reporters.

However, Wee said the date for the hearing of his client’s appeal at the Special Commissioner of Income Tax Malaysia had not yet been set.
 
Shafee, 70, filed the application on Nov 3 last year, seeking among others an order for the proceedings to be temporarily suspended pending the outcome of an 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.

Shafee said among others that he had filed a notice of appeal against the notices on additional assessment for the assessment years 2011, 2012, 2013, 2014 and 2016, to LHDN on June 27, 2019. He also cited the existence of special circumstances warranting the stay.

On Sept 27 last year, LHDN applied for its suit against Shafee, which was filed on May 6, 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.

Shafee also faces two charges of receiving RM9.5 million in proceeds from unlawful activities from Najib, and two charges of making false declarations to LHDN.