PETALING JAYA: Multiple discussions have taken place between Universiti Tunku Abdul Rahman (UTAR), the Finance Ministry and the Inland Revenue Board (LHDN) officials over tax payments and penalties pursued against the not-for-profit university, says MCA president Datuk Seri Dr Wee Ka Siong.
Dr Wee, a member of the UTAR university council, revealed that the university received a letter from LHDN in June, prompting him to meet with Prime Minister Datuk Seri Anwar Ibrahim to discuss the issue.
“The Prime Minister agreed to assist and instructed LHDN to address the matter. However, in July, LHDN submitted a report to the Prime Minister, maintaining their original stance,” Dr Wee explained.
Despite further meetings with the Prime Minister, LHDN insisted on their decision to pursue the tax.
Dr Wee stated that to overturn this decision, an appeal must be made to the Finance Ministry, which UTAR has since submitted.
“We are now in the final stage, awaiting the Finance Ministry officials to present a final decision to the Prime Minister, who also serves as the Finance Minister.
“Meanwhile, the deadline for tax payment had been extended to Sept 30,” Dr Wee said in a Facebook post Friday (Oct 4).
The dispute arises as LHDN pursues outstanding taxes and penalties amounting to RM83mil from UTAR.
Deputy Finance Minister Lim Hui Ying noted that LHDN had said that UTAR never received tax-exempt status, unlike the UTAR Education Foundation, which was granted such an exemption under Section 44(6) of the Income Tax Act 1967 on July 1, 2003.
In response, Dr Wee clarified that under the Private Higher Educational Institutions Act 1996 (Act 555), UTAR is owned by the UTAR Education Foundation, which was approved by the Education Ministry in 2002.
“In 2003, the UTAR Education Foundation was granted tax-exempt status by the Finance Ministry,” he noted.
Dr Wee announced plans to hold a press conference at 11.30am on Saturday (Oct 5) to provide the public with further understanding and clarification of the issue.
