The Kuala Lumpur High Court has scheduled November 16 to deliver its decision regarding a judicial review filed by Datuk Seri Mukhriz Mahathir. The former Kedah Menteri Besar is challenging the Inland Revenue Board's (IRB) issuance of additional tax assessment notices, which demand payment of more than RM5 million for the 2017 to 2019 assessment years. Judge Datuk Azizan Md Arshad set the date following arguments from both legal teams.
During the proceedings, Mukhriz's legal counsel argued that the tax notices were invalid because they were issued after the statutory five-year limitation period had expired. The defense contended that the IRB failed to provide a valid legal basis for extending this period, such as citing specific instances of fraud, wilful default, or negligence. Mukhriz’s team maintained that had the IRB clearly stated its grounds for the extension, the matter could have been addressed through the appropriate administrative channels, specifically the Special Commissioners of Income Tax.
In response, the IRB argued that the delay in issuing the assessments was due to extensions granted to Mukhriz himself to provide necessary information and documents during the tax investigation. The board maintained that it is unreasonable for the taxpayer to benefit from these delays and then challenge the resulting assessment timeline. The IRB also suggested that such disputes over the assessment process are better suited for the Special Commissioners of Income Tax rather than a judicial review.
This legal battle highlights the ongoing tension between taxpayers and revenue authorities regarding the limits of tax collection powers. As the court prepares its ruling, the outcome will likely clarify the procedural requirements for the IRB when issuing assessments beyond the standard statutory period. The public and business community are watching closely, as the decision may set a precedent for how tax authorities justify extended assessment timelines in future cases.