KUALA LUMPUR: Inland Revenue Board (IRB) chief executive officer Datuk Seri Sabin Samitah said foreign donations are taxable, on a case-by-case basis.
“We cannot generalise, we need to see this on a case-by-case basis. I cannot elaborate further as I am bound by secrecy provisions,” he said in response to claims by former prime minister Datuk Seri Najib Razak that donations from foreign countries are not subjected to local tax laws.
Sabin was speaking to reporters after officiating at the Malaysian Tax Conference - Malaysia Baru's Tax Reform Agenda organised by Malaysian Institute of Accountants (MIA) and Malaysian Association of Tax Accountants (MATA).
Last week, Najib was billed RM1.5 billion in additional income tax owed to the government.
This was in reference to Najib not declaring taxable income of close to RM4 billion, between 2011 and 2017 — which included the RM2.6 billion that Najib has insisted was a donation from Saudi Arabia.
Last year, Najib had admitted that he did not verify the source of the RM2.6 billion that ended up in his bank account, which had allegedly been siphoned from 1Malaysia Development Bhd (1MDB).
Speaking to Al Jazeera’s 101 East show, the former prime minister said he had assumed the money was “donations” connected to Saudi Arabia’s King Abdullah Abdulaziz Al Saud after the latter gave assurance of his support.
Najib is facing multiple charges linked to funds belonging to 1MDB and its former unit SRC International Sdn Bhd. His 1MDB-linked trial begins today.