Ku Nan settles RM57.2m lawsuit with IRB

Both parties agree to resolve the matter out of court, hence the settlement, says attorney

by RAHIMI YUNUS / pic by BERNAMA

FORMER Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor (picture) settled a lawsuit filed by the Inland Revenue Board of Malaysia (IRB) to recover RM57.17 million of income tax arrears.

An attorney representing Tengku Adnan, S Saravana Kumar said both parties agreed to resolve the matter out of court, hence the settlement.

“Both parties amicably resolved the matter, it is a settlement,” Saravana said at the Kuala Lumpur (KL) High Court yesterday after the settlement proceedings which were held in Judge Datuk Azimah Omar’s chambers.

Saravana said the court had recorded the consent judgment thus the case shall not proceed to a trial.

However, he declined to disclose the terms of the deal to the media, including the quantum to be paid by Tengku Adnan to the IRB.

Deputy solicitor Dr Hazlina Hussain appeared for IRB, while the proceedings were also attended by senior revenue counsels Norhisham Ahmad and Al-Hummidallah Idrus.

On Sept 2, both parties told Judge Azimah that they were working to resolve the case based on a settlement offered by the defendant.

The judge overseeing the case gave two weeks for both parties to reach a settlement agreement, otherwise, the case would proceed to hear IRB’s application for summary judgment and Tengku Adnan’s request for a stay of proceedings.

On July 24 last year, the government via the IRB filed a lawsuit against Tengku Adnan seeking RM57.17 million in income tax arrears between 2012 and 2017.

The yearly unpaid taxes were RM64,444 in 2012, RM6.61 million (2013), RM8.89 million (2014), RM9.2 million (2015), RM5.52 million (2016) and RM26.88 million (2017).

With imposed tax increases, the government claimed that the defendant had still failed to pay the income tax due.