Tengku Adnan and IRB Agree to Out-of-Court Settlement for RM57M in Unpaid Tax Arrears

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The tax suit filed by the Inland Revenue Board (IRB) against Datuk Seri Tengku Adnan Tengku Mansor for the recovery of RM57.17 million in tax arrears has been settled amicably today.

In the friendly settlement proceedings, which went on for over three hours, a consent judgement was recorded.

This was informed by counsel S Saravana Kumar who represented the former Federal Territories minister after the matter was heard in the chambers of High Court judge Datuk Azimah Omar.

However, he said the terms of the settlement could not be disclosed.

“The matter was amicably resolved, and the terms are not to be disclosed.

“It is a settlement. A consent judgement has been recorded by the court,” he said.

Deputy revenue solicitor Dr Hazlina Hussain and senior revenue counsel Norhisham Ahmad and Al-Hummidallah Idrus acted for the IRB.

Today’s proceedings follow an earlier settlement offer by Tengku Adnan to the IRB.

Rohanis Shukri/NST

The IRB previously told the High Court on September 2 that it had yet to decide on the quantum to be paid, especially on the amount of the penalties.

The government via the IRB filed the suit against Tengku Adnan on July 24 last year, accusing the Putrajaya MP of owing six years’ worth of income taxes from 2012 to 2017 as stated in the Assessment Notice dated March 15, 2019.

It had in its claim said that because Tengku Adnan failed to pay the income tax amount within 30 days from the date the notice was issued, as stipulated under Section 103 of the Income Tax Act 1967, a 10 percent tax increase was imposed.

According to the IRB, Tengku Adnan had failed to pay the owing income tax with a 10 percent increase, which totalled to RM57,167,069.35.

The IRB demanded Tengku Adnan pay a total of RM57,167,069.35, with interest on the total sum at 5 percent per annum from the date of judgment until the date of realisation as well as costs and other relief deemed appropriate by the court.