THE Inland Revenue Board (LHDN) has been granted summary judgement to recover tax arrears amounting to RM1.05bil from wanted business man Jho Low (Laow Taek Jho).
In granting the application, Judicial Commissioner Kenneth Yoong Ken Chinson St James ruled that there was neither issue nor “some other reason” that was triable to determine the statutory tax claim of RM1,053,972,936.58.
“I, therefore, allow LHDN’s application to enter judgment for RM1,053,972,936.58 with interest at 5% per annum from the date of this judgment (Oct 17) to the date of full realisation,” he said.
The judge who also ordered Jho Low to pay RM15,000 in costs.
In the judgement sighted by the media, the judge held that it was a straightforward statutory tax claim, for which the defendant had failed to submit returns on the assessments issued to him for the years in question.
The judge said Jho Low did not challenge the service of the assessments that he failed to pay the total tax amount assessed.
According to him, Jho Low’s defence of not having bank accounts in Malaysia during the years of assessment (2013 and 2014) and did not conduct any business in the country in those two years are not reasons for him to pay tax.
“Similarly, Jho Low does not need to conduct business in Malaysia to be obligated to pay tax. Put differently, not conducting business in Malaysia is not a defence to this tax claim,” he said.
LHDN submitted that Jho Low had failed to submit returns for the years of assessment 2013 and 2014 by the deadline, which is no later than April 30 in the year following the year of assessment, failing which, he was issued Notices of Assessment for the sums of RM202,575,166.56 for 2013 and RM755,582,048.52 for 2014.
However, Jho Low did not pay the tax assessed within the prescribed 30-day time limit, which resulted in a 10% increase imposed on the assessed tax amount.
The total tax payable for 2013 and 2014 is RM1,053,972,936.58.
-BTS Media
