Shahrir should have reported RM1 million to LHDN, court told

The Kuala Lumpur High Court was today told that Shahrir Ab Samad should have reported the RM1 million he received in 2013 to the Inland Revenue Board (LHDN).

Deputy head of the celebrity, public and various entertainers desk audit unit, LHDN assessment division, Tuan Zulkfli Tuan Lah, 48, said Shahrir should have reported the money he received to LHDN to determine whether it was taxable income or otherwise.

"It is the responsibility of taxpayers to report their income and for certain categories, commission and rental money are also income.

"If the amount received is large enough, reaching up to RM1 million, it needs to be reported to LHDN to determine whether it is eligible to be taxed or not. The amount of tax charged depends on the amount of income," he added.

He said this when re-examined by deputy public prosecutor Rasyidah Murni Azmi at the hearing of Shahrir's case for failing to declare RM1 million received from Najib Razak through a AmIslamic Bank cheque dated Nov 27, 2013.

Tuan Zulkfli, who is the 21st prosecution witness, said that Shahrir, who is former Johor Bahru MP, was a good taxpayer and had not failed to submit his tax assessment forms since 2004.

On Oct 5, Tuan Zulkfli told the court that Shahrir never declared an income exceeding RM1 million for the assessment years of 2013 to 2018.

He said the income declared by Shahrir in 2013 was RM87,834, followed by RM128,104 in 2014, RM213,394 in 2015, RM189,545 in 2016, RM267,090 in 2017, and RM193,191 in 2018. 

When questioned by deputy public prosecutor Mohd 'Afif Ali, Tuan Zulkfli said the charge of failing to declare income to LHDN was a serious and embarrassing offence that could tarnish a person’s image, regardless of whether he or she was an MP or an ordinary individual.

Shahrir, 72, was charged with laundering money by failing to state his real income in the income tax return form for assessment year 2013, a violation of Section 113(1)(a) of the Income Tax Act 1967, regarding the RM1 million, believed to be from unlawful activities, which he received from Najib.

He was charged with committing the offence at LHDN, Duta branch, Government Office Complex, Jalan Tuanku Abdul Halim on April 25, 2014.

The charge, under Section 4(1) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, provides for imprisonment of up to five years, a fine of RM5 million, or both, upon conviction.

The hearing before judge Muhammad Jamil Hussin continues tomorrow.