KUALA LUMPUR: The High Court today heard there were no documents to show that former finance minister, Lim Guan Eng, had revoked the tax exemption on Yayasan Al-Bukhary.
This was stated by the ministry's tax section division (services II) head Hazlan Abdul Aziz, who testified as a witness subpoenaed by former prime minister Tan Sri Muhyiddin Yassin.
Hazlan said this during the defamation trial in a suit filed by the Bagan member of parliament, against Muhyiddin, who is also Bersatu president, on the revocation of the foundation's tax exemption.
Hazlan, when questioned by the former Penang chief minister's lawyer Guok Ngek Seong, said he did not find any letter that stated Lim did not recognise the foundation's tax exemption between 2018 and 2020.
Guok, in his opening statement on Monday said the issue of the revocation of the foundation's tax exemption was made when Muhyiddin was the prime minister.
The lawyer said the letter issued by foundation chairman Tan Sri Syed Mokhtar Al-Bukhary on Feb 5, 2021 showed a clear picture on the matter.
He had said the words used by Syed Mokhtar was very clear that "recently" had only meant "recently" based on a letter dated Feb 5,2021.
He said the letter did not state his client or the Pakatan Harapan (PH) government had revoked the exemption.
According to the letter of appeal, 27 corporate companies under the foundation were given the additional tax assessment exemption between April 2016 and March 2018.
It stated that the Inland Revenue Board (IRB) then made the decision not to recognise the ministry's letter of approval for the period when the tax credit had already been used by the companies in the previous year.
The foundation then filed an appeal.
Judicial Commissioner Roz Mawar Rozain set Sept 12 to hear oral submissions.
Yesterday, Muhyiddin, in his testimony, denied defaming Lim when he issued a media statement about the revocation of the foundation's tax exemption.
Instead, Muhyiddin said he had only explained the additional statement recorded by the Malaysian Anti-Corruption Commission on March 9 last year as part of investigations into Jana Wibawa and the foundation.
Muhyiddin had said he had received a letter of appeal from the foundation that stated the tax exemption was not recognised by the IRB although it had been allowed previously.
Muhyiddin said all decisions by IRB were under the purview of the Finance Ministry and finance minister.
Lim was finance minister in the PH government that held power from May 2018 to February 2020.
On March 27 last year, Lim filed a suit claiming that the statements were defamatory.
Lim claimed that the allegedly defamatory statements implied that he had abused his position and power by authorising or directing the IRB to impose taxes and penalties on the charitable foundation, when it should not have been taxed.