Latest news with #IncomeTaxAct1967
New Straits Times
21 hours ago
- Business
- New Straits Times
Najib's bankruptcy case adjourned to Sept 8 over disorganised submissions
KUALA LUMPUR: Datuk Seri Najib Razak's bid to stay bankruptcy proceedings was postponed after the High Court raised concerns over disorganised and incomplete submissions by his legal team. Judicial commissioner Suhendran Sockanathan @ Saheran Abdullah also instructed Najib's lawyer Muhammad Farhan Shafee to refile a consolidated set of submissions after finding that key issues were either missing or scattered across documents. Farhan had earlier argued that the Inland Revenue Board's (IRB) RM1.69 billion tax claim against Najib was tied to funds allegedly received from 1Malaysia Development Bhd (1MDB), which were still the subject of ongoing criminal and civil proceedings. He submitted that there were unresolved legal issues surrounding whether the alleged proceeds of criminal activity could be taxed under Section 4 of the Income Tax Act 1967. "The IRB has treated the sums received through the appellant's personal accounts, alleged to have originated from 1MDB, as income. "These amounts do not fall within the scope of Section 4 of the Income Tax Act. Furthermore, provisions under the Anti-Money Laundering Act are also involved," he said during the proceeding today. Farhan also told the court that these matters were pending before the Special Commissioners of Income Tax, and a final ruling had yet to be made. He also raised the issue of potential double recovery by the government, saying there were attempts to penalise his client under both criminal and tax laws using the same facts. However, the court pressed Farhan repeatedly for clarity, pointing out that these central arguments were either not included in the written submissions or only briefly referenced in affidavits. "None of this is (arguments) in your submissions, you know? "At the moment, you are all over the place. "I do not want to have bits here and bits there... it is too cumbersome," Saheran said. Farhan then suggested that the court grant a short date to allow his team to update and streamline their submissions. He acknowledged that their arguments had not been presented in a structured manner and expressed his willingness to return to court with a more comprehensive and organised set of submissions. Saheran: I think yes... Farhan, I think you need to focus a bit more. Farhan: Sure. Saheran: Update the submissions and get it to us... I do not want this to be sitting on my docket. For a long period of time. How long will it take? Farhan: We can file it within the week. Saheran: Take two weeks... but do it properly. Senior federal counsel Norhisham Ahmad, who appeared for IRB, also supported the call for clearer submissions, adding that many of the appellant's arguments had not been raised in their original filings. The court then fixed Sept 8 to hear the case. Najib is appealing against two bankruptcy notices stemming from additional tax assessments amounting to RM1.46 billion, which have now ballooned with penalties and interest to RM1.69 billion. The former prime minister maintains that the tax assessments are flawed and should not proceed while related matters are being litigated in other courts. On June 25, 2019, the government, through IRB, filed the suit against Najib asking him to settle the unpaid tax with interest at five per cent, a year from the date of judgment, as well as costs and other relief deemed fit by the court. The government claimed that Najib had failed to pay his income tax from 2011 to 2017 within the stipulated 30-day period after assessment notices were issued by the IRB.
The Star
a day ago
- Business
- The Star
TNB gets leave for judicial review
PETALING JAYA: The High Court granted leave to Tenaga Nasional Bhd (TNB), through its subsidiary TNB Western Energy Bhd, to commence judicial review against the Inland Revenue Board (IRB) in relation to a tax assessment totalling RM291.6mil for the financial year ended December 2018. In a filing with Bursa Malaysia yesterday, TNB said it was also granted an interim stay of all further proceedings, including the enforcement of the assessment notice, until the disposal of the substantive hearing. The High Court scheduled a case management on Aug 5. Earlier this month, the Federal Court ruled in favour of the IRB concerning an additional tax assessment, also for 2018. The court overturned earlier High Court and Court of Appeal decisions that had favoured TNB, reinstating a tax bill initially set at RM1.81bil, which was reduced to RM1.25bil after a penalty remission in December 2020. The ruling clarified that TNB, as a utility company, should claim tax relief under schedule 7B (investment allowance) of the Income Tax Act 1967, not schedule 7A (reinvestment allowance) meant for manufacturers. This decision could lead to a total tax liability of RM5.05bil for TNB for 2013 to 2018 with potential additional assessments for 2020 and 2021. TNB is assessing the financial impact, which may affect its earnings and net assets for 2025, and plans to pursue investment allowance claims under schedule 7B. Although the ruling has set a precedent for TNB's tax obligations, it is not expected to impact its operations.
The Star
2 days ago
- Business
- The Star
TNB granted leave for judicial review on RM291.6mil tax bill
PETALING JAYA: The High Court granted leave to Tenaga Nasional Bhd (TNB), through its subsidiary TNB Western Energy Bhd, to commence judicial review against the Inland Revenue Board (IRB) in relation to a tax assessment totalling RM291.6mil for the financial year ended December 2018. In a filing with Bursa Malaysia, TNB said it was also granted an interim stay of all further proceedings, including the enforcement of the assessment notice, until the disposal of the substantive hearing. The High Court scheduled a case management on Aug 5 for further directions. Earlier this month, the Federal Court ruled in favour of the IRB concerning an additional tax assessment, also for the year 2018. The court overturned earlier High Court and Court of Appeal decisions that had favoured TNB, reinstating a tax bill initially set at RM1.81bil, which was reduced to RM1.25bil after a penalty remission in December 2020. The ruling clarified that TNB, as a utility company, should claim tax relief under Schedule 7B (Investment Allowance) of the Income Tax Act 1967, not Schedule 7A (Reinvestment Allowance) meant for manufacturers. This decision could lead to a total tax liability of RM5.05bil for TNB for the years 2013 to 2018, with potential additional assessments for 2020 and 2021. TNB is assessing the financial impact, which may affect its earnings and net assets for 2025, and plans to pursue Investment Allowance claims under Schedule 7B. The ruling sets a precedent for TNB's tax obligations but is not expected to impact its operations.
The Star
09-07-2025
- Business
- The Star
Abide by audit deadlines or face more assessments, urges LHDN
KUALA LUMPUR: The Inland Revenue Board (LHDN) has advised taxpayers to respond within the stipulated timeframe during a tax audit. LHDN senior assistant director Rohaizad Abd Fandi said failure to do so will be deemed as a lack of supporting documentation for the claims made, which may result in them being disallowed and additional assessments being issued. 'Any ineligible claim or claim that cannot be substantiated with valid evidence constitutes an offence under the Income Tax Act 1967. 'A Notice of Additional Assessment will be issued, and the taxpayer will be required to settle the amount within the prescribed period,' he said during an appearance on Bernama Radio's Klinik Cukai segment titled 'Kena Audit? Tenang dan Fahami Dahulu Proses dan Kepentingannya'. Rohaizad said many taxpayers still view audits negatively, with some reacting in panic. He stressed that tax audits are a routine process to verify the accuracy and transparency of information submitted in tax returns. Rohaizad advised taxpayers to remain calm when selected for an audit, to first understand the contents of the notice issued and to contact the nearest LHDN office or attend in person to seek further clarification. 'Taxpayers have clear rights during the audit process, including the right to be formally notified before an audit is initiated,' he said, Bernama reported. Taxpayers are also entitled to a reasonable period to prepare the required documents, to request an extension formally and to file an appeal if they disagree with the audit findings, he said. Rohaizad added that taxpayers may seek assistance from qualified tax agents, especially for large-scale businesses with complex financial structures involving numerous transactions or multiple income sources. He said tax audits may vary depending on the type and complexity of the case. As such, taxpayers are advised to fully cooperate throughout the process and ensure all relevant supporting documents are properly maintained. He also reminded taxpayers to settle any outstanding taxes as instructed to avoid legal action, including the possibility of travel restrictions.
The Star
08-07-2025
- Business
- The Star
LHDN advises taxpayers to respond within deadline during audit
KUALA LUMPUR: The Inland Revenue Board (LHDN) has advised taxpayers to respond within the stipulated timeframe during the course of a tax audit. LHDN senior assistant director, Rohaizad Abd Fandi, said failure to do so will be deemed as a lack of supporting documentation for the claims made, which may result in them being disallowed and additional assessments being issued. "Any ineligible claim or claim that cannot be substantiated with valid evidence constitutes an offence under the Income Tax Act 1967. "A Notice of Additional Assessment will be issued, and the taxpayer will be required to settle the amount within the prescribed period,' he said during an appearance on Bernama Radio's Klinik Cukai segment titled "Kena Audit? Tenang dan Fahami Dahulu Proses & Kepentingannya'. Rohaizad noted that many taxpayers still view audits negatively, with some reacting in panic. He stressed that tax audits are a routine process to verify the accuracy and transparency of information submitted in tax returns. Rohaizad advised taxpayers to remain calm when selected for an audit, to first understand the contents of the notice issued, or contact the nearest LHDN office or attend in person to seek further clarification. "Taxpayers have clear rights during the audit process, including the right to be formally notified before an audit is initiated,' he emphasised. Taxpayers are also entitled to a reasonable period to prepare the required documents, to request an extension formally and to file an appeal if they disagree with the audit findings, he explained. Rohaizad added that taxpayers may seek assistance from qualified tax agents, especially for large-scale businesses with complex financial structures involving numerous transactions or multiple income sources. He noted that tax audits may vary depending on the type and complexity of the case; as such, taxpayers are advised to fully cooperate throughout the process and ensure all relevant supporting documents are properly maintained. He also reminded taxpayers to settle any outstanding taxes as instructed to avoid legal action, including the possibility of travel restrictions. - Bernama
