LHAG Advocates And Solicitors LHAG Advocates And Solicitors


Illegally Collected Taxes to be Returned

A few days ago, the Prime Minister revealed that some individuals and businesses were forced to pay more taxes than they were required to by the previous government. He said that the present government will review some of the assessments and, where applicable, will return the excess taxes improperly collected.

What we can do for you

Pursuant to the Prime Minister’s announcement, we will review our present and future tax litigation engagements. In order to recover such taxes through the appropriate legal channel, one must lay the proper groundwork. We have succeeded in collecting improperly and illegally collected taxes with interest in recent landmark cases, such as Pelangi Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri (income tax), Power Root (M) Sdn Bhd v Ketua Pengarah Kastam (sales tax) and Cititower Sdn Bhd v Pemungut Duti Setem (stamp duty).

The term “illegally collected taxes” has not been sufficiently explained or defined. It may be that the assessments that fall within this category would encompass a specific class of taxpayers, for instance, those individuals or businesses suspected of making political donations to certain political affiliations that opposed the then government. If this is the case, then taxpayers may also consider commencing legal proceedings for the tort of misfeasance.

If you have reason to believe that you or your business has been affected by this, we are available to assist you in recovering any improperly or illegally collected taxes.

Please contact our tax partners Datuk D P Naban or Mr S Saravana Kumar at tax@lh-ag.com, and we will champion your cause.

16 May 2018