Pakatan Harapan’s Yayasan Albukhary blunder
Anwar realises that revoking Yayasan Albukhary’s tax exemption status was a major political blunder, more so when they cannot explain why they were punishing an Islamic charity organisation for no reason.
NO HOLDS BARRED
Raja Petra Kamarudin
Perikatan Nasional chairman Muhyiddin Yassin has refused to retract his allegation against former finance minister Lim Guan Eng that the latter had revoked Yayasan Albukhary’s tax exemption status.
Instead, Muhyiddin asked Lim to explain himself, saying that Yayasan Albukhary’s tax exemption status was approved during Najib Tun Razak’s tenure as Prime Minister. However, when Pakatan Harapan took office in 2018, the Inland Revenue Board (LHDN), which was under the Finance Ministry, revoked that tax exemption status.
Today, Prime Minister Anwar Ibrahim defended Guan Eng in Parliament by saying that the Finance Minister and Prime Minister have no power and authority to grant or revoke a tax exemption status. Anwar realises that revoking Yayasan Albukhary’s tax exemption status was a major political blunder, more so when they cannot explain why they were punishing an Islamic charity organisation for no reason.
Guan Eng, in turn is suing Muhyiddin, which Muhyiddin is contesting (you can read Muhyiddin’s reply to Guan Eng below).
Actually, Anwar lied to Parliament. He gave only half the facts. The exemption was granted to Yayasan Albukhary before Pakatan Harapan took over in 2018. This, Anwar did not tell Parliament. When Pakatan Harapan took over in 2018, the government revoked the tax exemption status and reimposed the tax, plus imposed a penalty of 45% on the unpaid tax, which would have pushed Yayasan Albukhary into insolvency.
Yayasan Albukhary then appealed LHDN’s claim on back taxes and the 45% penalty imposed. Muhyiddin merely minuted on Yayasan Albukhary’s appeal letter “Sila teliti rayuan ini. Jika teratur, saya tiada bantahan” — and sent it to Tengku Zafrul Aziz for his decision and action.
It is true, as Anwar told Parliament today, Muhyiddin has no power over tax exemption or any appeal thereon. The power lies with the Ministry of Finance. Muhyiddin merely extended the appeal letter and requested the Ministry of Finance to analyse and review the matter, and that he has no objection to whatever the Ministry of Finance deems fit. This fact would be clear if the supplemental Questions were allowed.
Anwar’s defence of Guan Eng today was merely a denial and there is more which Anwar needs to explain.
1. Will Anwar explain why the tax exemption was granted to Yayasan Albukhary in the first place prior to Pakatan Harapan taking over in 2018?
2. Will Anwar explain who was the Minister of Finance when the tax exemption was granted to to Yayasan Albukhary prior to Pakatan Harapan taking over in 2018?
3. Will Anwar, who is also the Minister of Finance, state for the record whether he believes that the Yayasan Albukhary should NOT receive a tax exemption for the Islamic charity work that it has undertaken?
4. Since Anwar stated that there was no revocation of the tax exemption granted to the Yayasan Albukhary, will Anwar, who is also the Minister of Finance, explain why there was a need for an appeal by Yayasan Albukhary?
5. Since Anwar stated that there was no revocation of the tax exemption by the then Minister of Finance, will Anwar explain why there is a need to charge Muhyiddin for abusing his power to consider such an appeal?
