THE Inland Revenue Board (IRB) has filed an application to strike out a counterclaim by lawyer Muhammad Shafee Abdullah in relation to the suit filed by IRB seeking payment amounting to RM9.41 million in tax arrears.

The application was filed by IRB on behalf of the government as the plaintiff on September 28 on the grounds that the counterclaim is an abuse of court process.

IRB claims that the counterclaim is aimed at disputing the assessment that had been raised with a basis and in a valid and orderly manner based on the Income Tax Act 1967.

“Any dispute as to the tax assessment such as whether it is incorrect, excessive or invalid should be heard before the Special Commissioners of Income Tax (PKCP),” IRB said in the application.

Shafee, who filed a counterclaim on August 11, claims that the tax suit against him was inaccurate and unlawful as well as an attempt to prevent him from continuing to represent former prime minister Najib Razak.

On September 27, IRB applied for its suit against Shafee to be decided through summary judgment on the grounds that the defendant had failed to pay the income tax arrears amounting to RM9,414,708.32 within the stipulated time.

A summary judgment is where a court decides a case without hearing testimony of witnesses.

The writ of summons and the statement of claim were filed on May 6 at the High Court, with Shafee, 69, named as the defendant.

The government claimed that an additional assessment amounting to RM621,291.85, RM978,854.11, RM3,581,500, RM1,735,124.03 and RM1,826,557,87 was made for the assessment year of 2011, 2012, 2013, 2014, 2016 respectively, through a notice, dated May 27, 2019, which was sent to the defendant.

It claimed that until now, the defendant has failed to pay the amount.

Shafee is the lawyer representing Najib in the case involving the misappropriation of SRC International Sdn Bhd and 1Malaysia Development Berhad (1MDB) funds.

Shafee is facing two charges with receiving RM9.5 million in proceeds from unlawful activities from Najib and two charges with making false declarations to IRB.

The income tax suit is fixed for case management before High Court deputy registrar Syeela Marlina Uttaman on November 5. – Bernama, October 13, 2021.