KUALA LUMPUR, Oct 8 — The Attorney General’s Chambers (AGC) has objected to former Lembaga Tabung Haji (TH) chairman Datuk Seri Abdul Azeez Abdul Rahim’s application for leave to commence judicial review proceedings against the Inland Revenue Board (IRB), over its alleged unilateral cancellation of an agreement on the settlement of RM4.8 million in tax and penalties.

Senior Federal Counsel (SFC) Ng Siew Wee said the application was premature as the impugned letter issued by the IRB to the former Baling MP on August 7 stated that a new tax computation would be issued in due course and did not raise a fresh assessment or demand payment of any quantified sum.

Ng said the impugned letter stated that a review of the case had uncovered new findings and facts concerning income allegedly omitted from the agreement, resulting in the cancellation of the agreement and consequently, the composite assessment with a new tax computation to be issued in due course.

“Abdul Azeez was not directed by the impugned letter to pay any additional tax. No amount of additional tax was determined. No fresh assessment had been issued at the time the present application was commenced,” she said during the hearing of the leave application by Abdul Azeez before Judge S Indra Nehru at the High Court here, today.

Lawyers Nicholas Mark Pereira, Datuk Amer Hamzah Arshad and Tan Sri Dzulkifli Ahmad appeared for Abdul Azeez, while SFC Ng appeared for the AGC, together with IRB Senior Revenue Counsel Marina Ibrahim.

In his application for leave to commence judicial review proceedings filed on September 6, Abdul Azeez is seeking to quash the IRB’s decision to unilaterally cancel the agreement dated February 9, 2022, and the subsequent notice of composite assessment dated March 22, 2022, involving the assessment years 2011 to 2020.

Among others, Abdul Azeez is contending that the agreement and subsequent composite assessment notice is final and conclusive per the law and is also asking for a court order compelling IRB to abide by said agreement.

Abdul Azeez claimed that the IRB had conducted a tax investigation against him in late 2021 or early 2022, which resulted in the agreement dated February 9, 2022.

He said under the agreement, both parties had agreed on the settlement of RM4.8 million in taxes and penalties for assessment years 2011 to 2020, adding that he had settled the amount through instalments as agreed.

Meanwhile, Nicholas submitted that the agreement was a written statutory agreement made pursuant to the power under Section 96A of the Income Tax Act 1967 and subsequently given effect through a formal composite assessment.

“Our position is that under Section 96A(6) of the Income Tax Act, once a composite assessment is made, it is final, conclusive and cannot simply be cancelled.

“This was not some letter written by a junior officer. It was a written statutory agreement, pursuant to power under the Act, which was then given effect by a formal assessment. It was signed by the respondent himself, the Director General of IRB at that time,” he said.

Justice Indra fixed November 11 to deliver her decision on the leave application. — Bernama