Court allows Naimah's bid to quash RM313.8mil additional tax assessment notice
A Malaysian High Court has ruled in favor of Na’imah Abdul Khalid, quashing a RM313.8 million tax assessment notice issued by the Inland Revenue Board. The judge determined the tax was unlawful, citing double taxation and the fact that the assets in question were foreign-sourced and not subject to the specific tax laws applied.
Why it matters
The ruling sets a significant legal precedent regarding the taxation of foreign assets and the jurisdictional limits of the Inland Revenue Board in Malaysia.
SHAH ALAM: The High Court here allowed the judicial review application by Toh Puan Na’imah Abdul Khalid, the wife of former finance minister Tun Daim Zainuddin, to quash an additional tax assessment notice amounting to RM313.8mil issued by the Inland Revenue Board (LHDN).
Judge Evawani Farisyta Mohammad ruled that the LHDN had acted beyond its jurisdiction under the Income Tax Act 1967 when it issued the additional assessment notice dated Aug 13, 2024, for the 2018 assessment year.
She said the Income Tax Act 1967 applied only to income earned in Malaysia and foreign-sourced income remitted into Malaysia, while the assets in dispute were Na’imah’s properties abroad and did not constitute income received in the country.
"Based on the reasons stated, the court hereby allows the applicant’s judicial review application with costs,” she said in the grounds of judgment shared with the media.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in