Shafee seeks stay of proceedings in RM9.41 million tax arrears suit


IRB has filed a suit against Muhammad Shafee Abdullah seeking payment amounting to RM9.41 million in tax arrears for five assessment years. – The Malaysian Insight file pic, November 5, 2021.

LAWYER Muhammad Shafee Abdullah has filed for a stay of proceedings in a suit by the Inland Revenue Board (IRB) seeking payment of income tax arrears amounting to RM9.41 million against him, pending the disposal of his appeal to the Special Commissioners of Income Tax of Malaysia.

Shafee, 69, filed the application seeking an order for the temporary suspension of the proceedings last Wednesday, pending the outcome of an application filed by former prime minister Najib Razak and his son, Mohd Nazifuddin, regarding the payment of income tax amounting to RM1.69 billion and RM37.6 million, respectively, to IRB before the Federal Court.

Shafee said the outcome of the appeals may affect the suit against him.

The hearing of the applications for leave to appeal by Najib and Nazifuddin will be heard on February 16.

Shafee said he has filed a notice of appeal against additional assessment notices for the assessment years 2011-2014 and 2016 to IRB on June 27, 2019, besides the existence of special circumstances that warrant the stay.

On September 27, IRB had applied for the suit to be decided via summary judgement on the grounds that the defendant has failed to pay income tax arrears amounting to RM9.41 million within the stipulated time.

A summary judgement is when a court decides a case without hearing the testimony of witnesses.

On May 6, IRB had filed a suit against Shafee seeking payment amounting to RM9.41 million in tax arrears for five assessment years.

Shafee is representing Najib in a case involving the misappropriation of 1Malaysia Development Bhd and SRC International Sdn Bhd funds.

He is facing two charges of receiving RM9.5 million in proceeds from unlawful activities from the former prime minister, and two charges of making false declarations to IRB. – Bernama, November 5, 2021.


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