The Shah Alam High Court has rejected an application made by Toh Puan Na’imah Abdul Khalid, wife of former finance minister Tun Daim Zainuddin, to temporarily halt an order requiring her to settle RM313.82 million in unpaid income taxes to the Inland Revenue Board (IRB).
The ruling was delivered by Judge Dr. Shahnaz Sulaiman, who concluded that Na’imah's request for an interim stay lacked sufficient grounds. She emphasized that the IRB, as the legal authority under the Income Tax Act (ITA) 1967, has the right to enforce tax collections. The court found no exceptional circumstances that would justify suspending the order. In her judgment, Shahnaz reinforced that tax obligations must be fulfilled regardless of any ongoing legal disputes. The fact that Na’imah is contesting the tax assessment does not exempt her from making the required payments in the meantime.
Shahnaz further addressed the issue of the substantial amount of taxes in question, asserting that the concept of a large sum can be subjective. She explained that while RM30,000 might seem like a significant tax burden to the average person, it does not change the legal requirement to pay taxes as stipulated under the ITA. She noted, Whether the tax assessment is RM30,000 or RM30 million, the law must be applied equally. The court also mentioned that any amounts collected in the meantime could be refunded by the IRB if it is later determined that Na’imah was overcharged.
Na’imah, 67, had sought the interim stay pending the resolution of her judicial review application, which challenges the IRB’s additional tax assessments for the year 2018. This legal action stems from the IRB's demand that she pay RM313.82 million in tax arrears. According to her affidavit, Na’imah argued that the tax assessment for the year 2018 was based on unsubstantiated claims. She contends that the IRB alleged she had over RM700 million in undeclared income, a figure she has described as baseless and without merit.
In addition to challenging the tax assessment for 2018, Na’imah has also raised concerns about her previous tax payments. She alleged that the IRB has failed to refund her RM3.807 billion in taxes that she claims were overpaid from 2017 and earlier. These unresolved financial matters add to the complexity of her case, as she seeks both to contest the current tax demands and recover what she asserts is owed to her by the tax authorities.
This case highlights the broader issue of tax collection and the obligations of individuals to comply with tax laws, regardless of the amounts involved. The court’s decision underscores that tax enforcement applies uniformly, and that legal avenues exist to address disputes after payments have been made. For Na’imah, the challenge now lies in continuing her legal battle over the substantial tax bill while adhering to the court’s directive to settle the amount in question.
Na’imah’s judicial review will proceed, but the court has made it clear that she must comply with the tax order in the interim, leaving the resolution of the overall dispute to future legal proceedings.
Sources: https://www.malaymail.com/news/malaysia/2024/10/18/daims-wife-naimah-loses-bid-for-interim-stay-on-irbs-rm313m-tax-arrears-in-judicial-review-case/154069
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