This article first appeared in The Edge Financial Daily on November 5, 2019

KUALA LUMPUR: Datuk Seri Tengku Adnan Tengku Mansor (pic) has withdrawn his application to strike out the Inland Revenue Board’s (IRB) application for a summary judgement in its RM57.17 million suit against the former federal territories minister.

At the High Court yesterday, Justice Datuk Azimah Omar ordered Tengku Adnan to pay RM2,000 costs to the plaintiff.

The former minister decided to withdraw his application as he intends to wait for the outcome of his application for a stay of proceedings, which is scheduled to be heard on Nov 15. He is seeking a stay pending his appeal for a reassessment of his tax arrears.

The IRB filed the summary judgement application on Sept 11, seeking RM57.17 million in income tax arrears for the period between 2012 and 2017 from the ex-minister. A summary judgement is where a court decides a case without hearing testimony of witnesses.

On July 24, the government filed a writ of summons against Tengku Adnan through the IRB. According to the statement of claim, Tengku Adnan still owed income tax for the year of assessment of 2012 to 2017 as stated in the Notice of Assessment dated March 15.

The plaintiff claimed that because Tengku Adnan failed to pay the income tax amount from 2012 to 2017 within 30 days from the date of filing of the Notice of Assessment stipulated under Section 103 of the Income Tax Act 1967, a 10% tax increase was imposed.

The plaintiff said the defendant still failed to pay the entire income tax amount along with the 10% increase within the 60 days stipulated under Section 103, adding that a further 5% tax increase would be imposed on the defendant.

It claimed that the defendant still failed to pay the owed income tax due, including a total increase of RM57.17 million.

Tengku Adnan was represented by Datuk S Satharuban while Bahari Yeow Tien Hong appeared for the IRB.