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KUALA LUMPUR: Petronas and three other companies obtained permission to initiate judicial review proceedings in the High Court here to challenge the Internal Revenue Board (LHDN) action to impose additional tax assessments totaling RM3.6 billion between 2010 and 2017.
Attorney S Saravana Kumar informed the court that LHDN did not object to the request and agreed that the company would be given permission to initiate a judicial review request through a draft consent order provided by the company.
“The draft consent order was prepared by us and to save time in court, all parties have reached a solution with the defendant (LHDN) by agreeing to grant the applicant permission to continue with the case,” said the attorney.
Judge Ahmad Kamal Md Shahid later registered the consent order, but the court has not set a date for the judicial review hearing.
In today’s proceedings, Saravana represented all the applicants, namely Petronas and its subsidiary Petronas Carigali Sdn Bhd together with Sapura OMV Upstream (PM) Inc and Tembungo Sub Block PSC, while Deputy Attorney Hazlina Hussain represented the CEO of LHDN as defendant.
In July of this year, Petronas and its subsidiary Petronas Carigali with Sapura OMV and Tembungo Sub Block presented three requests for judicial review against LHDN alleging that LHDN’s action was “ultra vires, illegal, null, in excess of authority and irrational in carrying out additional tax assessments for a total of RM3.6 billion ”.
Petronas alleged that LHDN had violated Section 15 (1) of the Petroleum (Income Tax) Act of 1967 (Pita).
The national oil company also alleged that LHDN had misinterpreted Section 72 (1) (a) of Pita, which amounted to accusing Petronas of tax evasion.
