Shafee, IRB to settle RM9.41m income tax suit

KUALA LUMPUR – Lawyer Tan Sri Muhammad Shafee Abdullah (picture) and the Inland Revenue Board (IRB) are in the process of settling a suit filed by the latter to recover over RM9.41 million in income tax arrears owed by him.

Counsel Datuk Seri Rajan Navaratnam, representing Muhammad Shafee,  told High Court Judicial Commissioner Roz Mawar Rozain that the parties are also seeking an adjournment of today’s hearing due to the new development (to settle the suit).

The court was scheduled to hear IRB’s application for a summary judgment against Muhammad Shafee today.    

(A summary judgment is obtained when the court decides on a case through written submissions without a full trial and calling witnesses).

Roz Mawar then set  8.30am on Dec 15 to hear the application for a summary judgment by IRB. 

“If there is no settlement, I have to proceed with the case. This case has gone long enough,” she added.

Meanwhile, Rajan told reporters that both parties are negotiating to explore the possibility of a settlement.

“We just want to see if it can be resolved amicably,” he said.

Senior Revenue Counsel Al-Hummidallah Idrus, representing IRB, said the IRB had responded to a proposal sent by Muhammad Shafee last month to settle the case.

On Sept 27, 2021, the IRB applied for its suit against Muhammad Shafee, which was filed on May 6, to be decided through summary judgment, on grounds that the defendant had failed to pay the income tax arrears amounting to RM9,414,708.32 within the stipulated time.

IRB claimed that the lawyer failed to pay the amount of income tax owed for the Assessment Years 2011, 2012, 2013, 2014 and 2016 including the increase on the imposed sum.

On Oct 28 last year, the High Court acquitted and discharged Muhammad Shafee on two charges of receiving proceeds from unlawful activities amounting to RM9.5 million from former prime minister Datuk Seri Najib Tun Razak and two charges of making incorrect statements to the IRB.

However, the prosecution filed an appeal against the court’s decision on Nov 1 last year.BERNAMA