Tengku Adnan and IRB agree to out-of-court settlement for RM57m in unpaid tax arrears

Datuk Seri Tengku Adnan Tengku Mansor is pictured at the Kuala Lumpur Court Complex on September 22, 2020. ― Picture by Hari Anggara
Datuk Seri Tengku Adnan Tengku Mansor is pictured at the Kuala Lumpur Court Complex on September 22, 2020. ― Picture by Hari Anggara

KUALA LUMPUR, Sept 23 — Umno treasurer-general Tengku Datuk Seri Adnan Tengku Mansor today agreed to settle over RM57.17 million in unpaid taxes owed to the Inland Revenue Board (IRB) between 2012 and 2017.

His lawyer S. Saravana Kumar said the two parties reached an amicable agreement but said he is not at liberty to divulge the terms of the settlement.

“Parties have resolved amicably. Terms not disclosable,” he told reporters at the Kuala Lumpur Court Complex here.

He added that a consent judgment was recorded byHigh Court judge Datuk Azimah Omar.

The High Court was scheduled to hear the IRB’s summary judgment application against Tengku Adnan and his request for a stay of proceedings earlier, which had been called off in light of the settlement.

Today’s proceedings follows on an earlier settlement offer by Tengku Adnan to the IRB. 

The IRB previously told the High Court on September 2 that it had yet to decide on the quantum to be paid, especially on the amount of the penalties.

Also representing Tengku Adnan today was Datuk S. Satharuban while IRB deputy revenue solicitor Hazlina Hussain represented the government.

The government via the IRB filed the suit against Tengku Adnan on July 24 last year, accusing the Putrajaya MP of owing six years worth of income taxes from 2012 to 2017 as stated in the Assessment Notice dated March 15 2019.

IRB said Tengku Adnan had failed to pay tax with arrears including a 10 per cent increase totalling RM57,167,069.35.

The sum comprised RM64,444.38 (2012); RM6,614,861.59 (2013); RM8,887,576.69 (2014); RM9,198,523.67 (2015); RM5,520,818.05 (2016); and RM26,880,844.97 (2017).

The IRB demanded Tengku Adnan pay a total of RM57,167,069.35, with interest on the total sum at 5 per cent per annum from the date of judgment until the date of realisation as well as costs and other relief deemed appropriate by the court.

Tengku Adnan was also formerly Federal Territories minister.

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