Low’s main aide ordered to pay RM68mil in tax arrears

KUALA LUMPUR: The government has obtained a judgment in default (JID) against Eric Tan, one of the key figures in the 1Malaysia Development Bhd (1MDB) scandal, for him to pay RM68mil in tax arrears.

The High Court allowed the application by the government to enter a JID against Tan, whose full name is Tan Kim Loong, after he failed to make an appearance before the court.

The order was issued by deputy registrar Farah Shuhada Ramli during case management here yesterday.

The 43-year-old Tan, who is missing, is said to be the right-hand man of fugitive financier Low Taek Jho or better known as Jho Low.

According to the court document on the JID sighted by The Star , Tan has to pay RM67,996,891.87 to the plaintiff (the government).

The court also ordered Tan to pay interests of 5% per annum from the date of the judgment until realisation date and RM2,000 in costs.

On Jan 15, the government, through the Inland Revenue Board, filed the RM68mil claim against Tan for tax arrears between 2010 and 2013.

In the statement of claim, Tan allegedly owed the government RM2.706mil in 2010, RM22.090mil (2011), RM35.479mil (2012) and RM1.538mil (2013) through notices issued on Sept 30, 2020.

The notices were sent to his last known address in Taman Pusat Kepong on Nov 24, 2020, and there had been no reply.

“As the defendant had failed to pay the amount owed as stipulated in the notice under Section 103 of the Income Tax Act, a 10% surcharge is imposed on the unpaid amount resulting in the additional charges of RM270,602.18 (2010), RM2,209,094.99 (2011), RM3,547,991.14 and RM153,847.30,” the statement of claim said.

It said the Malaysian government was entitled to get the unpaid assessment taxes that were owed and the additional charges.

Tan has been a wanted man, together with businessman Low, since October 2016.

In June 2018, the Malaysian AntiCorruption Commission released a photofit of Tan, together with three others as those wanted to facilitate investigations in connection with 1MDB.