B40 may be wiped out if tax provision struck down: Judge

A judge remarked that the B40 (bottom tier households with less than RM4,850 monthly income) may be wiped out if the Federal Court allows Najib Abdul Razak’s appeal to nullify a provision in the Income Tax Act 1967.

P Nallini, who is a member of the five-person Federal Court bench that today heard the former prime minister’s appeal to quash the RM1.69 billion tax summary judgment against him, made the remark while seeking clarification from the appellant’s lead counsel Muhammad Shafee Abdullah.

Former finance minister Najib’s appeal hinged on his contention that Section 106(3) of the Income Tax Act 1967 (ITA) is invalid for contravening Article 121 of the Federal Constitution. Article 121 is in relation to...