Under Malaysian tax law and established legal precedents, outstanding tax assessments to LHDN must be paid regardless of ongoing appeals, disputes, or other financial penalties.
From a strict statutory standpoint, if an individual secures funds to settle a court-ordered fine, LHDN's position remains that tax liabilities are distinct, legally binding obligations that must also be satisfied.
Under Section 103 of the Income Tax Act 1967, tax due must be paid upon the issuance of a notice of assessment, even if the taxpayer is appealing the decision.
Any available or raised funds should legally be directed toward resolving these public statutory debts.
Tax revenues belong to the public coffers.
Therefore, prioritizing a personal fine over a multi-billion ringgit tax liability is seen by some as contrary to public fiscal responsibility.
Moreso if the taxable entity or person was formerly the Prime Minister and the Minister of Finance of the country.
This was the person, who on 24 November 2013, while serving as Prime Minister and as Minister of Finance famously said that those who avoid paying taxes can be regarded as traitors who have betrayed the country especially public figures who should adhere to the "Pay First, Talk Later" standard.
This person whom LHDN reports to at one time, argued it is unjust to force the liquidation of assets or fundraising for a disputed tax assessment that is still being legally contested.
Noted that the RM50 million court fine and the tax follow a completely separate court track and enforcement timeline.
But for a former Prime Minister and a Minister of Finance, this justification is nothing short of weak but flimsy.
The supposedly technical separation is a legal technicality that fails to address the unique ethical and public responsibilities of a former Prime Minister and Finance Minister.
As a former Minister of Finance, he was the institutional custodian of the nation's fiscal policies and oversaw LHDN itself.
Holding the highest financial office in the country creates a profound moral obligation to uphold the spirit of the law, rather than utilizing procedural boundaries to delay or separate liabilities that ordinary citizens are forced to settle immediately.
During his tenure, the administration consistently defended the "Pay First, Talk Later" framework under Section 103 of the Income Tax Act as an essential mechanism for national development and fiscal discipline.
A tax dispute is merely an "administrative civil matter" to be handled later—while prioritizing a personal fine to secure immediate detention benefits—directly undermines the institutional rules that his own government enforced on the public.
Any resources amassed through public appeals or the liquidation of assets should legally and ethically be prioritized toward the public coffers via LHDN, rather than being carved out strictly for criminal relief.
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