By DayakDaily Team
KUCHING, March3: The High Court in Kuching today granted a taxpayer leave to initiate judicial review proceedings against the Inland Revenue Board (IRB) over an alleged case of double taxation on a property gain.
The dispute arose after the taxpayer reported and paid Real Property Gains Tax (RPGT) on gains from the disposal of real property shares.
The RPGT assessment became final and conclusive, as no appeal was filed within the statutory period.
Subsequently, the IRB conducted an audit and determined that the same gain should have been classified as income under the Income Tax Act 1967.
The IRB then vacated the previously finalised RPGT assessment and issued an additional income tax assessment, accompanied by a penalty.
The taxpayer contends that the IRB’s actions were unlawful, arguing that unilaterally revoking a finalised assessment without prior notification deprived him of his statutory right of appeal and amounted to a procedural irregularity.
The High Court, satisfied that the application raised arguable legal issues, granted leave for judicial review.
The substantive hearing has been scheduled for April 8, 2026, during which the Court will consider the legality of the Director-General’s decision-making process.
The taxpayer is represented by Bong Siak Peng of Bong Siak Peng Advocates, with assistance from Datuk Wong Joo Hua of JPRO Tax Consultancy Sdn Bhd and tax consultant Lam Kam Wing. — DayakDaily
