Tax-exemption: Bersatu files counter report against PM, Guan Eng

Several Bersatu Youth leaders have filed a police report against DAP chairperson Lim Guan Eng and Prime Minister Anwar Ibrahim for allegedly misleading the Dewan Rakyat.

This is over their denial that Lim, as then finance minister, was responsible for revoking the Albukhary Foundation’s tax-exempt status.

Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal claimed Anwar’s explanation that a finance minister could not interfere with the Inland Revenue Board (IRB) director-general’s decisions, as per sub-section 44(6) of the Income Tax Act 1967, was misleading.

Wan Fayhsal claimed that Anwar, who is also the finance minister, failed to mention that sub-section 44(6B) allowed Lim, as the finance minister at the time, to appeal any of the IRB director-general’s decisions.

“The prime minister did not clearly explain that the Albukhary Foundation and its subsidiary companies received tax exemption during the BN administration from 2016 to 2018. He did not explain that the IRB had revoked tax exemption during Pakatan Harapan’s administration when Lim was finance minister.

“The prime minister’s explanation is a lie as Section 44(6B) Income Tax Act states that any decision of the IRB director-general can be appealed by the finance minister,” he told reporters outside the Dang Wangi police station today.

Section 44(6B) states that where an institution or organisation is aggrieved by the decision of the director-general in respect of an application made under subsection (6), the institution or organisation may, within 30 days after being informed of the decision, appeal to the minister and the minister may make any decision as he considers fit.

Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal (centre) outside Dang Wangi police station today

Wan Fayhsal also claimed that Lim could have invoked Section 127(3) of the same Act which grants the finance minister the power to exempt anyone from the provisions of the Act.

Lim had filed a report against former premier Muhyiddin Yassin two days ago for allegedly mounting a racially charged election campaign based on alleged slander linked to the Albukhary Foundation’s tax-exempt status.

This came after the Perikatan Nasional chairperson accused Lim of revoking Albukhary Foundation’s tax exemption status when the latter was finance minister.

Ex-finance minister Lim Guan Eng and former PM Muhyiddin Yassin

Muhyiddin previously accused Lim of revoking Albukhary Foundation’s tax exemption status when the latter was finance minister.

Muhyiddin made the claim after the MACC summoned him to have his statement recorded, and among the issues the anti-graft agency raised was the appeal against the cancellation of the tax exemption granted to the Albukhary Foundation.

Lim in his police report urged police to probe Muhyiddin for criminal defamation and an attempt to incite a breach of peace.