Former finance minister Daim Zainuddin’s wife, Naimah Khalid, has received a temporary stay order from the Court of Appeal allowing her to delay a RM313.8 million tax arrears payment.
A three-judge panel led by Justice Supang Lian granted the temporary order after hearing submissions from her lawyer, S Saravana Kumar, and Inland Revenue Board’s (LHDN) senior revenue counsel Hafidz Ahmad today.
Other judges who sat with her were Justices Hashim Hamzah and Choo Kah Sing.
In delivering a brief judgement, Choo held that Naimah’s bid for the temporary stay order had merit.
Last month, the Shah Alam High Court refused to grant Naimah an interim stay of an order compelling her to pay RM313.8 million in tax arrears to LHDN.
It said that payment for taxes needed to be made even though an appeal is pending before the special commissioners of income tax (SCIT).
Naimah, who was a lawyer, filed an application to commence a legal challenge in August against LHDN’s decision to issue her a notice to pay RM313.8 million in tax arrears.
She contended that LHDN cited the wrong provisions in the Income Tax Act 1967 when issuing a notice for payment of the sum as tax assessed for 2018.
Naimah also said that since January, LHDN had questioned her about an increase in her shares in Ilham Baru Sdn Bhd and claimed she used “unreported income” to pay off a loan involving Ilham Baru, Ilham Tower Sdn Bhd and Welberton Private Equity Corp.
LHDN also said she owns several properties in the US which she allegedly failed to declare, namely units at the Nantasket Beach Resort Hotel in Massachusetts, Chauncy Place, and Hotel Buckminster and Annex in Boston.
LHDN claimed these properties were worth more than RM700.6 million.
Earlier today, Saravana told the appeals court that while Naimah was willing to pay her taxes, she was unable to do so as she had no access to her funds after her accounts were frozen by the Malaysian Anti-Corruption Commission (MACC)
Saravana said Naimah and Daim – who jointly filed their tax returns – had no problems with LHDN in the past.
“They are one of the biggest taxpayers in the country.
“If a stay is not granted, LHDN might take civil action against her (to recover RM313.8 million) and she may be subjected to bankruptcy (proceedings).”
Hafidz, however, argued that any taxes due need to be paid, regardless of the amount.
Hashim then asked how the government expected Naimah to fork out RM313.8 million when MACC had frozen her accounts.
In response, LHDN said taxpayers like Naimah have to find ways to settle the sum.
The High Court will hear her application to commence a judicial review on Feb 12, 2025.
Source : FMT
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