KUALA LUMPUR: Toh Puan Na'imah Abdul Khalid has failed in her bid to obtain an interim stay against an order compelling her to pay RM313.82 million in income tax arrears to the Inland Revenue Board (IRB).
Shah Alam High Court judge Dr Shahnaz Sulaiman, in dismissing the wife of former finance minister Tun Daim Zainuddin's application, said there were no exceptional circumstances in this case.
Na'imah filed the application to preserve her status quo in her judicial review application against the IRB's claims that she allegedly had not settled assessment worth over RM313 million.
The 67-year-old applicant argued that special circumstances justified an interim stay, including that her judicial review application would be rendered nugatory if the stay was refused, the large tax sum raised by the respondent, and the irreparable damage and undue hardship she would face without the stay.
The IRB argued that the application for an interim stay amounted to an injunction preventing the respondent from performing its statutory duty under the Income Tax Act (ITA) 1967.
The respondent further submitted that the tax payable must be settled, even if the taxpayer has initiated court proceedings.
Shahnaz in her judgment said according to the provisions of the ITA, tax payments must be made regardless of the amount, whether excessive or not, even if legal proceedings have been initiated.
"On the issue of the enormous sum of tax that is due, this court is of the considered view that what amounts to a large sum is relative.
"To the man on the street, a tax assessment of RM30,000 may be massive. Yet, as provided for under the ITA, the man street is still required to make payment of this amount.
"The law applies equally to all. Whether the tax assessment is RM300,00 or RM30 million, the law should and must be applied alike.
"Since this case pertains to tax payments, any tax collected from the applicant can be refunded by the respondent," she said.
On Aug 13, Na'imah in her judicial review application described the agency's decision to raise the impugned Notice of Additional Assessment for 2018 was tainted with illegality, impropriety, irrationality, abuse of process and erroneous.
In her affidavit in support, Na'imah claimed the assessment raised against her was following an over RM700 million in alleged unreported income in 2018, which she said was based solely on baseless accusations.
She claimed the entire tax audit process appeared to be undertaken maliciously as the respondent failed to follow the proper tax audit guidelines and it is unlawful, invalid, null and void and/or in excess of authority.
She also claimed the respondent had failed to pay out to her RM3.807 billion in tax refunds for 2017 and prior.
In January, Na'imah and Daim, 86, were separately charged with the alleged failure to abide by the Malaysian Anti-Corruption Commission's notice to declare their assets.
Daim had allegedly failed to declare his assets such as one bank account, seven luxury vehicles, 38 companies, and 25 properties at the MACC headquarters in Putrajaya on Dec 13, last year.