KUALA LUMPUR, Feb 23 — The Malaysian government through the Inland Revenue Board (IRB) today objected to Tan Sri Muhammad Shafee Abdullah’s application to obtain leave from the court to file a counterclaim against IRB’s demand that he pays income tax arrears amounting to RM9.41 million.

IRB senior counsel Al-Hummidallah Idrus in representing IRB, objected to the application on grounds based on Order 73 of Rule 4 of the Rules of Court 2012 and Subsection 42(2)(e)(i) of the Government Proceedings Act 1956, which states that counterclaims cannot be filed against the government for tax collection actions.

High Court Judicial Commissioner Roz Mawar Rozain set April 13 for the decision on the objection to the application.

Muhammad Farhan Muhammad Shafee’s lawyer who represented Muhammad Shafee when contacted confirmed the date of the decision.

Muhammad Shafee was also represented by Datuk Seri Rajan Navaratnam while IRB senior counsel Norzilah Abdul Hamid and Muhammad Faqrol Syazreen Mohd Ghause also acted for the IRB.

The lawyer filed the application in May 2021, among others on the grounds that the tax claim was an attack on him as a political victim in his capacity as a lawyer for Datuk Seri Najib Razak and was considered to be an Umno lawyer even though he was not the party’s lawyer.

On September 27, 2021, IRB requested that the suit against Muhammad Shafee be decided through direct judgment on the grounds that the defendant failed to pay the entire income tax arrears and the tax increase imposed on him amounting to RM9,414,708.32 within the stipulated period.

IRB which filed the suit on May 6, 2021, claimed that until now, the lawyer has still failed to pay the amount of income tax owed for the Assessment Years 2011, 2012, 2013, 2014 and 2016 including the increase on the imposed sum.

Muhammad Shafee is Najib’s lawyer in the case of misappropriation of SRC International Sdn Bhd and 1Malaysia Development Berhad (1MDB) funds.

On October 28 last year, the High Court acquitted and discharged Muhammad Shafee on two charges of receiving money from illegal activities amounting to RM9.5 million from Najib and two charges of making incorrect statements to the IRB.

However, the prosecution on Nov 1 last year filed an appeal against the court’s decision. — Bernama