High Court Sets Nov 16 for Decision on Mukhriz Mahathir’s Judicial Review Over RM5 Million IRB Tax Assessment

KUALA LUMPUR, Aug 4 — The High Court today fixed November 16 to deliver its verdict on a judicial review application filed by Datuk Seri Mukhriz Mahathir challenging the Inland Revenue Board’s (IRB) issuance of additional tax assessment notices totaling more than RM5 million for the 2017 to 2019 assessment years.

Judge Datuk Azizan Md Arshad set the decision date after hearing oral submissions from Mukhriz’s counsel, Nizamuddin Abdul Hamid, and Senior Revenue Counsel Marina Ibrahim, who represented the Director-General of the Inland Revenue Board.

Nizamuddin argued before the court that the additional tax assessment for the 2019 assessment year had already been settled and that the notices issued were legally invalid because they fell outside the statutory five-year limitation period. He contended that the IRB failed to explicitly state the required legal justification for extending the assessment period beyond the prescribed limit, such as establishing fraud, wilful default, or negligence.

“In this case, no reason was given. Had the reason been stated, we would have brought the matter before the Special Commissioners of Income Tax (SCIT),” Nizamuddin submitted.

He added that his client only learned that the extension had been granted on the grounds of alleged negligence after the judicial review proceedings had already been initiated.

In response, Marina argued that the additional assessment notices were issued outside the standard timeframe because Mukhriz had previously requested and received an extension to submit necessary documentation to the tax authority.

“At the material time, an extension was granted to prepare the relevant documents, and it would be unfair to use that fact against the respondent,” Marina argued.

She further submitted that the dispute involves complex factual issues regarding tax assessments and argued that the case should be adjudicated by the SCIT, which possesses statutory jurisdiction to decide time-limit disputes.

Mukhriz, a 61-year-old businessman, former Kedah Menteri Besar, and president of Parti Pejuang Tanah Air (Pejuang), originally filed the judicial review application on December 20, 2024, naming the Director-General of the Inland Revenue Board, Finance Minister Datuk Seri Anwar Ibrahim, and the Government of Malaysia as respondents.

The High Court granted leave to proceed with the judicial review on January 2, 2025. Subsequently, on July 24, 2025, the court allowed an application to remove Prime Minister Anwar Ibrahim and the Malaysian Government as co-respondents, leaving the IRB Director-General as the sole remaining respondent.

In his application, Mukhriz is seeking an order to quash the IRB’s decision issuing additional assessment notices amounting to RM5,020,707.18 for the assessment years 2017, 2018, and 2019 on the grounds that the decision was unlawful and unreasonable. He is also seeking a court declaration that the tax penalty imposed under Section 113(2) of the Income Tax Act 1967 is null, void, and ultra vires.

-NMT