This article first appeared in The Edge Financial Daily on August 17, 2017

KUALA LUMPUR: Country Heights Holdings Bhd executive chairman and major shareholder Tan Sri Lee Kim Yew has settled the tax liabilities of RM22.7 million, including penalties, claimed by the Inland Revenue Board (IRB) against Country Heights Sdn Bhd (CHSB), a wholly-owned subsidiary of the property group.

The settlement was made with Lee’s fixed deposits seized by the IRB.

In a filing with Bursa Malaysia yesterday, Country Heights said that the settlement was made by Lee as the group’s major shareholder and not as his personal liability.

The property group said that the IRB has also withdrawn its winding up petition against CHSB, which was accordingly struck out by the Shah Alam High Court.

To recap, Lee said in May that his fixed deposits of some RM126 million placed in a foreign-owned bank have been seized by the IRB.

Lee notified the company via a letter dated May 8 that he “understands” the seizure was in relation to RM22.5 million worth of tax liabilities incurred by CHSB.

The tax liabilities were accrued from the years of assessment of 1997 and 1998 during the Asian Financial Crisis.

Lee had said then that he is agreeable to allow his fixed deposits seized by the IRB to be used to settle the tax liabilities.

This is provided that the company acknowledges the sum used to settle the tax liabilities as an amount due and owing to Lee, and that Country Heights undertakes to settle the amount as soon as it has sufficient funds to do so.