Tengku Adnan agreed to pay over RM40m to settle IRB suit

KUALA LUMPUR : Former Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor today agreed to pay income tax arrears amounting to RM40,358,336.61 to the Inland Revenue Board (IRB) after both parties agreed to resolve the matter amicably at High Court here on September 23.

Datuk Seri Tengku Adnan Tengku Mansor is pictured at the Kuala Lumpur Court Complex on September 22, 2020. ― Picture by Hari Anggara
Datuk Seri Tengku Adnan Tengku Mansor is pictured at the Kuala Lumpur Court Complex on September 22, 2020. ― Picture by Hari Anggara

The IRB in its suit, sued Tengku Adnan over unpaid taxes with a 10 per cent increment totalling RM57,167,069.35.null

According to the draft consent order obtained by the media through the court search system, the Malaysian government through IRB has agreed to amend Tengku Adnan’s additional assessment notices as the defendant for the assessment years 2012 to 2017, all dated March 15, 2019.

“Therefore, the additional assessments amended to be paid by the defendant for 2012 amounted to RM53,872; 2013 (RM4,182,392.03; 2014 (RM6,285,357.26); 2015 (RM6,537,624.73); 2016 (RM3,524,071.10) and 2017 (RM19,775,019.49),” the draft order said.

“The additional amended tax amounted to RM40,358,336.61 including the penalties as part of the total tax settlement and is considered as a composite assessment under Section 96A of the Income Tax Act 1967,” it said.null

The agreement also stated that both parties will discuss within 45 days from the date of the agreement of consent (September 23) on the payment mode.

“If the parties fail to reach an agreement on the mode of payment, this settlement will be paid before December 31, 2020.

“The plaintiff (Malaysian government) and Tengku Adnan hereby withdraw all interlocutory applications made under these civil proceedings and there will be no order on costs,” according to the agreement.

The Government of Malaysia via IRB filed the suit on July 24 last year against Tengku Adnan for allegedly owing income taxes for assessment years 2012 to 2017 as stated in the Assessment Notice dated March 15, 2019.

IRB in its suit claimed the Putrajaya MP had failed to pay the owing income tax with a 10 per cent increment, totalling RM57,167,069.35.

The sum comprised RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

As such, the plaintiff had demanded from the defendant a total of RM57,167,069.35, with interest on the total sum at five per cent per annum from the date of judgement until the date of realisation as well as costs and other relief deemed appropriate by the court.


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