KUALA LUMPUR, March 21 — Prime Minister Datuk Seri Anwar Ibrahim has today said that DAP’s Bagan MP Lim Guan Eng did not revoke Yayasan Albukhary’s tax exemption.
Anwar said accusations claiming Lim had done so when he was finance minister during the Pakatan Harapan (PH) administration were not true.
“Yayasan Albukhary was given tax exemption under Subsection 44 (6) of the Income Tax Act 1997 [Act 53] which is exempted from income tax.
“The government, from the Finance Ministry’s records, verified that Yang Berhormat Bagan when he was finance minister did not issue any cancellation of the tax exemption as he has been accused of doing to Yayasan Albukhary,” Anwar told Parliament during Prime Minister’s Question Time.
The Prime Minister was responding to DAP’s Rasah MP Cha Kee Chin who asked for a clarification on whether Lim during his tenure as Finance Minister from May 2018 to February 2020 had cancelled the Yayasan Albukhary tax exemption and the reason for the cancellation by the Inland Revenue Board if any.
The matter became a highlight after former prime minister Tan Sri Muhyiddin Yassin claimed that Lim had revoked the tax exemption for Yayasan Albukhary as the finance minister of the first Pakatan Harapan administration.
The Pagoh MP reiterated the same allegation at a PAS centre in Taman Melewar, Gombak, in Selangor that same night.
Despite Lim’s warning, Muhyiddin said he would not retract his allegation.
Cha had also asked when the tax exemption was cancelled and later instated, the amount of money received by Yayasan Albukhary and the benefits to the Federal Government from the tax exemption.
“That's because, the fact is, the approval was only made on February 25, 2021, which is the approval of the unusual tax exemption involving both the Yayasan Albukhary and the Albukhary group.
“Indeed, according to subsection 44(6), is not the power of the minister or the prime minister — it is the absolute power of the Inland Revenue Board (LHDN).
“Regarding the method that was raised, I have explained that it is not a common thing in the Finance Ministry’s record. I cannot elaborate because this case is still under investigation by MACC (Malaysian Anti-Corruption Commission) and the court.
“It's just that our approach is certainly different from before — that is asking big companies to transfer big money, give exemptions and then donate to parties, or individuals,” Anwar said.
He added that he chose to call Tan Sri Syed Mokhtar Albukhary to guarantee his support for projects that benefit the country and for the benefit of the poor paddy farmers because this involves Bernas.
“I asked him to donate to the paddy farmers directly. So RM60 million to the paddy farmers and 30 per cent of the profits recorded over 20 years.
“This is the first time we asked him to give 30 per cent of net profit to the paddy farmers.
“So there are different approaches, one is to hand over to the party, one is to hand over to the paddy farmers, I choose to hand over to the paddy farmers,” Anwar said.
In response to PAS’ Kubang Kerian MP Datuk Seri Tuan Ibrahim Tuan Man, who asked if there are other companies that made millions if not billions, if they had been asked to contribute similarly, Anwar said there are 60 giant companies that are currently contributing in terms of managing TVET (Technical and Vocational Education and Training) training.
“In our consultation with Syed Mokhtar, we gave assurance to help in large infrastructure projects he is involved in. That's the first.
“Secondly, there is a list of 60 giant companies, including multinationals, that are asked to cover TVET financing, so they have taken over and helped to maintain, train and cost of the company.
“I can’t remember completely but it includes Sunway, Berjaya and companies that are part of the Associated Chinese Chambers of Commerce and Industry,” he said adding that the Albukhary group had also offered to help in this area in Pekan because Proton operates there and Tanjong Malim as well.
