Naimah wins bid to quash LHDN’s RM313.8mil tax demand

Naimah Khalid, widow of former finance minister Daim Zainuddin, has successfully challenged a RM313.8 million tax demand from the Inland Revenue Board (LHDN). High Court judge Evawani Farisyta Mohammad ruled that the LHDN had exceeded its authority under the Income Tax Act by issuing a notice demanding the additional tax. The court found that the Income Tax Act only applies to locally received income, and the LHDN failed to provide evidence that foreign-sourced income remitted to Malaysia was taxed.

Naimah's properties in the US were sold, but no evidence was presented to show the proceeds were remitted to Malaysia. The court also dismissed allegations of increased shareholdings in Ilham Baru Sdn Bhd and unreported income related to loans, stating those issues were resolved in 2018. Naimah's legal team, including S Saravana Kumar, Amira Azhar, and Dharshini Sharma, argued that the notice for the 2018 tax assessment was unlawful, leading to double taxation.

Naimah, who has always been a responsible taxpayer, praised the ruling, stating it demonstrates the public's trust in the judiciary when government bodies abuse power.