IRB seeks tax arrears of RM68m from ally of Jho Low

by BERNAMA / pic by TMR FILE 

KUALA LUMPUR – The Government of Malaysia through the Inland Revenue Board of Malaysia (IRB) has filed a suit against Eric Tan Kim Loong, who is alleged to be an ally of fugitive businessman Low Taek Jho or Jho Low (picture), demanding that Tan pay income tax totalling RM68 million.

The Malaysian government as the plaintiff filed the writ of summons via IRB on Jan 15 at the High Court here and named Tan, 43, as the defendant, over income tax arrears for the years of assessment from 2010 to 2013.

According to the court’s case list, the case came up for e-Review before High Court Deputy Registrar Farah Shuhada Ramli today and case management has been set for March 16.

In the statement of claim, the Government of Malaysia alleged that for the Years of Assessment 2010, 2011, 2012 and 2013, the defendant was due to pay income tax of RM2,706,803.84, RM22,090,949.92, RM35,479,911.48 and RM1,538,473.04 based on the Notice of Assessment for the said years, dated Sept 30,  2020.

The plaintiff clamed that notices of assessment were sent by registered post to the defendant on Nov 24  2020 to his last known address in Taman Pusat Kepong here, which was known by the plaintiff at the time, but were never returned to the plaintiff without being surrendered.

The plaintiff further stated that credit surplus of RM782.02 due to the defendant was utilised and deducted as part payment of income tax for the Year of Assessment 2010, leaving an outstanding balance of RM2,706,021.82 for that tax assessment year.

“As the defendant  failed to pay income tax of RM2,706,021.82, RM22,090,949.92, RM35,479,911.48 and  RM1,538,473.04 within 30 days of the delivery of the said Notices of Assessment to him (the defendant), as provided for under Section 103 of the Income Tax Act 1967, an increase in tax of 10 per cent respectively amounting to RM270,602.18, RM2,209,094.99, RM3,547,991.14 and RM153,847.30 was imposed and added to the overall income tax for the Years of Assessment 2010 until 2013 that still remain unpaid,” the plaintiff said in its statement of claim.

The plaintiff claimed that to date, the defendant had yet to pay to the plaintiff the amounts and penalties due which come up to RM67,996.891.87.

As such, the plaintiff is demanding that the defendant pay RM67,996.891.87, five per cent interest from the date of judgment until the realisation date, costs and other relief deemed fit by the court.

Prior to this, the media had reported that Tan is a close ally of  Jho Low and was also allegedly involved in billions of ringgit in transactions relating to the 1MDB scandal.