High Court to rule Nov 16 on Mukhriz’s RM5mil tax challenge

The High Court in Kuala Lumpur has scheduled a decision on November 16 for Mukhriz Mahathir's judicial review, which challenges nearly RM5 million in additional tax assessments issued by the Inland Revenue Board (LHDN). Mukhriz, son of former Prime Minister Dr Mahathir Mohamad, is contesting the legality of the assessments issued after the five-year limitation period as stipulated by the Income Tax Act.

His counsel, Nizamuddin Hamid, argued that the Special Commissioners of Income Tax (SCIT) should be the proper forum, as Mukhriz is challenging the legality of the additional assessments, not disputing the tax amount.

Nizamuddin claimed that LHDN failed to specify the reason for issuing assessments outside the statutory period. Had they provided a valid reason, such as fraud, wilful default, or negligence, the matter would have been directed to the SCIT. However, LHDN only disclosed, after Mukhriz filed the judicial review, that it relied on alleged negligence to justify the assessments. Mukhriz's counsel also pointed out that Mukhriz had settled the 2019 assessment, which could have been taken into consideration.

Marina Ibrahim, representing LHDN, contended that the assessments were issued after the statutory period due to extensions granted by LHDN to Mukhriz for providing information and documents. She argued that it would be unfair to use these extensions against the respondents. Marina further asserted that the SCIT was the appropriate forum, as determining whether the assessments were time-barred required factual findings, which fell within the tribunal's jurisdiction.

She also argued that the High Court should not determine issues requiring factual findings relating to tax assessments, as this was not within the High Court's jurisdiction.