Lembaga Hasil Dalam Negeri - Cawangan Guaman Lembah Klang 1. ) TMT Industry Sdn Bhd 2. ) Mo, Yu Hui 3. ) Chan, Hsun-Wei 4. ) Md Hanif bin Othman

Lembaga Hasil Dalam Negeri - Cawangan Guaman Lembah Klang 1. ) TMT Industry Sdn Bhd 2. ) Mo, Yu Hui 3. ) Chan, Hsun-Wei 4. ) Md Hanif bin Othman

Because s.106(3) ITA 1967 precludes the High Court from entertaining challenges to the assessed amount in civil recovery proceedings and s.75A makes directors jointly and severally liable where the company is liable, the court was bound to enter summary judgment for the Government; merits of assessment must be pursued before the SCIT, not in the civil suit.

Citation
WA-21NCVC-5-01/2022 (Mahkamah Tinggi)
Parties
Appellant / Defendant: TMT INDUSTRY SDN BHD; Appellant / Defendant: MOU, YU-HUI; Appellant / Defendant: CHAN, HSUN-WEI; Appellant / Defendant: MD HANIF BIN OTHMAN; Respondent / Plaintiff: KERJAAN MALAYSIA
Court
High Court
Jurisdiction
Malaysia
Judgment Date
15 August 2022
Case Number
WA-21NCVC-5-01/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Tax Recovery / Appeal From High Court Interlocutory Summary Judgment
Outcome
Summary judgment entered for the Plaintiff in the High Court; Defendants held liable; order in terms granted
Legal Topics
Income Tax Recovery, Summary Judgment (order 14 ROC 2012), Directors' Liability Under S.75 a ITA 1967, Special Commissioner of Income Tax (scit) Appeals, Section 106(3) ITA 1967
Source Language
Malay/English
Tax Law Civil Procedure Company Law Income Tax Recovery Summary Judgment (order 14 ROC 2012) Directors' Liability Under S.75 a ITA 1967 Special Commissioner of Income Tax (scit) Appeals Section 106(3) ITA 1967

Case Brief

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Parties

TMT INDUSTRY SDN BHD

Appellant / Defendant

MOU, YU-HUI

Appellant / Defendant

CHAN, HSUN-WEI

Appellant / Defendant

MD HANIF BIN OTHMAN

Appellant / Defendant

KERJAAN MALAYSIA

Respondent / Plaintiff

Procedural Posture

Civil Tax Recovery / Appeal From High Court Interlocutory Summary Judgment

Legal Issues

  1. 1 Whether summary judgment under Order 14 ROC 2012 applies in tax recovery proceedings
  2. 2 Whether defendants can raise triable issues to resist summary judgment in tax recovery proceedings
  3. 3 Whether directors are personally liable for company tax under s.75A ITA 1967 after winding up

Ratio Decidendi

Because s.106(3) ITA 1967 precludes the High Court from entertaining challenges to the assessed amount in civil recovery proceedings and s.75A makes directors jointly and severally liable where the company is liable, the court was bound to enter summary judgment for the Government; merits of assessment must be pursued before the SCIT, not in the civil suit.

Court Disposition

Summary judgment entered for the Plaintiff in the High Court; Defendants held liable; order in terms granted

Orders

  • Summary judgment entered against the Defendants
  • Order in terms granted in favour of the Plaintiff