Keputusan Mukhriz cabar cukai taksiran tambahan RM5 juta ditetap 16 Nov

The High Court has set November 16 for Mukhriz Mahathir's appeal regarding an additional tax assessment of nearly RM5 million, issued by the Inland Revenue Board of Malaysia (LHDN). The verdict was handed down after hearing arguments from Mukhriz's lawyers, Nizamuddin Hamid and Marina Ibrahim, who represent the LHDN. Nizamuddin claimed that the High Court, not the Special Civil Service Tax Officer (SCIT), had the jurisdiction to hear the case as Mukhriz's challenge focused on the notice of additional tax assessment, not the amount of tax collected.

He stated that the notice was invalid as it was issued beyond the five-year time limit set under the Income Tax Act. If the LHDN wants to issue a tax assessment after this period, it must specify that the extension was due to fraud, error, or negligence. The notice was issued without citing any of these reasons, making it invalid.

If these reasons are stated, the lawyers plan to take the matter to the SCIT. LHDN revealed after the tax assessment notice was issued that they relied on the ground of negligence to request the issuance of the tax assessment beyond the time limit. Mukhriz had also halted the additional tax assessment for the 2019 fiscal year, while Marina argued that the tax assessment was issued after the time limit as the LHDN provided an extension of time for Mukhriz to submit the requested information and documents during the investigation.

She argued that this extension was given to provide documents, and it was unfair to use this against the respondent. She stated that the SCIT is the appropriate forum as determining whether the tax assessment exceeds the time limit requires factual inquiry, which falls within its jurisdiction. Marina also stated that the High Court, with its jurisdiction of tax assessment review, should not determine a matter requiring factual inquiry related to the tax assessment.

Mukhriz, the son of former Prime Minister Dr Mahathir Mohamad, had requested to cancel the additional tax assessment notices for the fiscal years 2017, 2018, and 2019, each totaling RM2,558,875.90, RM2,445,004.91, and RM16,826.37, respectively. The High Court previously upheld Mukhriz's appeal and postponed the enforcement of the contested tax assessment until the case was decided.