Naimah wants to quash LHDN’s claim for RM313 million in tax arrears

Naimah Khalid says the Inland Revenue Board colluded with the Malaysian Anti-Corruption Commission to land her in trouble and tarnish her reputation. (Bernama photo)

SHAH ALAM: Naimah Khalid, the wife of former Finance Minister Daim Zainuddin, has filed an application in the High Court to quash a claim by the Inland Revenue Board (LHDN) for payment of RM313.8 million in tax arrears.

Naimah alleges that LHDN cited the wrong provisions of the Income Tax Act 1967 when issuing a notice for payment of the amount assessed as tax for 2018.

She also said LHDN has been questioning her since January about an increase in her shares in Ilham Baru Sdn Bhd, alleging that she used “undeclared income” to pay off a loan between Ilham Baru, Ilham Tower Sdn Bhd and Welberton Private Equity Corp.

LHDN also says it owns multiple properties in the U.S. that it reportedly failed to declare, including properties at the Nantasket Beach Resort Hotel in Massachusetts, Chauncy Place and Hotel Buckminster and Annex in Boston.

According to LHDN, these properties are worth more than RM700.6 million.

However, Naimah pointed out that these properties were purchased more than 30 years ago and their value cannot be determined based on the 2018 market price.

“My lawyers have explained that the assets are not in the country and do not fall within the scope of LHDN.

“But LHDN stated that as long as I am a taxpayer here (in Malaysia), I will be subject to audit in respect of all my sources of income, regardless of where they come from.”

Naimah subsequently alleged that LHDN had “colluded” with the Malaysian Anti-Corruption Commission to cause her trouble and tarnish her reputation.

She also seeks a court ruling that the provisions of the Income Tax Act cannot be “extended” to require taxpayers to provide information about their foreign assets.

The court has set September 3 as the date for the administration of the case.