FORMER prime minister Muhyiddin Yassin said Albukhary Foundation need not have filed an appeal regarding its tax-exempt status if it was not revoked by the Inland Revenue Board (IRB), an agency under the Finance Ministry. 

In his defence statement in response to the defamation suit against him by former finance minister Lim Guan Eng, Muhyiddin said he had seen a letter from the Finance Ministry to Syed Mokhtar Al-Bukhary sometime in 2021.

Muhyiddin claimed the letter said the ministry had allowed the foundation’s appeal against the IRB’s decision not to recognise its tax-exempt status and impose a penalty.

Muhyiddin said he saw the letter while being questioned by the Malaysian Anti-Corruption Commission (MACC).

“I am allowed to make an inference and conclude the tax exemption had indeed been cancelled, otherwise, an appeal would not need to be made nor any approval need to be given by the  Finance Ministry in 2021,” he said. 

The Perikatan Nasional (PN) chairman said the Albukhary Foundation had been granted tax exemption by the previous Barisan Nasional (BN)-led government, under Section 127(3A) of the Income Tax Act 1967. 

“After the 14th general election, the plaintiff (Lim) was appointed finance minister from May 21, 2018, to February 24, 2020. As finance minister, the IRB was under his (Lim) jurisdiction and the tax exemption was not recognised by the IRB during the plaintiff’s tenure in the position,” he said.

Muhyiddin said during his tenure as prime minister, he received a letter from Syed Mokhtar addressed to the Prime Minister’s Office.

“The letter appealed against the IRB’s decision not to recognise the tax exemption for Albukhary Foundation given by the previous Barisan Nasional-led government, as well as the decision to impose a penalty on the foundation.

“I, who was not the finance minister nor the minister responsible for the IRB, referred the matter to the finance minister at the time, namely Tengku Datuk Seri Zafrul Abdul Aziz, for consideration, and he allowed the appeal,” said Muhyiddin.

On March 27, Lim filed a suit against Muhyiddin for allegedly issuing three defamatory statements on Facebook about him over the tax exemption issue on March 9, 11 and 12.

Lim said the slanderous statements implied he had abused his position and power by authorising or ordering the IRB to impose taxes and penalties on the charitable foundation, when it should not have been taxed. – Bernama, April 26, 2023.