KUALA LUMPUR (Dec 22): The Inland Revenue Board (IRB) said, after hearing arguments and submissions by parties, the Federal Court judges had unanimously dismissed the application for leave to appeal filed by Malayan Banking Bhd (Maybank) with costs.

According to a media release issued by the IRB yesterday, Maybank previously applied with the High Court to quash the notification of reduced assessment for year of assessment (YA) 2014 and notices of additional assessment for YAs 2015, 2016, and 2017 raised by the IRB. 

It did not state how much tax is being disputed. 

The release noted that the High Court had rejected the application, and the Court of Appeal later affirmed the learnt High Court judge decision.

In the present case, Maybank applied for leave to appeal to the Federal Court.

IRB deputy solicitor Dr Hazlina Husain said counsel for the IRB argued that there is no illegality, error of law or exceptional circumstance that warrants Maybank’s application for leave to appeal to be granted, and several cases had supported the IRB’s argument.

The three members of the Federal Court, led by Chief Justice of Malaysia Tun Tengku Maimun Tuan Mat, agreed with the IRB’s submissions and decided that Maybank is not qualified for capital allowance under Schedule 3 of the Income Tax Act 1967.

Further to that, Datuk Palpanaban Devarajoo, who represented Maybank, failed to convince the judges that there is any illegality, error of law or exceptional circumstance that warrants Maybank's application for leave to appeal to be granted.

Consequently, Maybank failed to proceed with its application for a judicial review against the IRB to quash the notices of assessment raised.

The Federal Court also instructed Maybank to pay the total amount due and payable to the IRB within 30 days from the date of this decision.

Palpanaban represented Maybank together with S Saravana Kumar and Ng Kar Ngai from Messrs Rosli Dahlan Saravana Partnership, while Hazlina represented the IRB and Ahmad Hanir Hambaly @ Arwi (with Krishna Priya) represented the Attorney-General's Chambers (AGC).