Ku Nan, IRB in Midst of Resolving RM57.1M Income Tax Suit

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Datuk Seri Tengku Adnan Tengku Mansor and the Inland Revenue Board (IRB) are in the process to settle the suit to recover over RM57.17 million of unpaid income taxes owed by the former Federal Territories Minister from 2012 to 2017.


IRB deputy solicitor, Dr Hazlina Hussain informed High Court Judge Datuk Azimah Omar yesterday.

“This is a settlement offer by the defendant (Tengku Adnan). As such, we have to study Your Honour…both parties are working to resolve the case. As the issues are complex, the parties would be taking a bit of time to settle the case,” she said.

The court was scheduled to hear IRB’s application for a summary judgement against Tengku Adnan or better known as Ku Nan and his application for a stay of proceedings today.

A summary judgement is when the court decides a certain case through arguments without hearing witness statements in the trial.

Meanwhile, Tengku Adnan’s counsel Datuk Rosli Dahlan also asked for an adjournment of the hearing as they were in the process of settlement of the suit.

“The parties have reached settlement on the quantum, but the mode of the settlement has yet to be decided,” he said, adding that the parties were trying to resolve the matter.

However, Hazlina told the court that the quantum has yet to be decided by IRB especially on the amount of the penalties.

Justice Azimah fixed Sept 23 to hear IRB’s summary judgment application as well as Tengku Adnan’s request for a stay of proceedings.

“This is the final…I am giving two weeks…if there is no settlement, I have to proceed with the case. This case has gone long enough,” the judge said.

The Government of Malaysia via IRB filed the suit on July 24 last year after accusing Tengku Adnan as the defendant of owing income taxes for assessment years 2012 to 2017 as stated in the Assessment Notice dated March 15, 2019.

IRB in its claims, accused the Putrajaya MP of failing to pay the owing income tax with 10 percent increase totalling RM57,167,069.35.

The sum comprised RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

As such, the plaintiff is demanding from the defendant a total of RM57,167,069.35, with interest on the total sum at five percent per annum from the date of judgement until the date of realisation as well as costs and other relief deemed appropriate by the court.