Toh Puan Na’imah Abdul Khalid successfully challenged an additional RM313.8 million tax claim imposed by the Inland Revenue Board (IRB) for the 2018 assessment year, with the High Court ruling in her favor on August 6, 2026 [1, 2, 3, 4].
The tax demand concerned three foreign properties in the United States acquired in the 1990s by her late husband Tun Daim Zainuddin: Nantasket Beach Resort, Chauncy Place, and Hotel Buckminster. The properties were valued at approximately US$178 million (over RM700 million) [1, 3, 4].
High Court judge Evawani Farisyta Mohammad ruled the tax assessment illegal and irrational, stating the Income Tax Act allows taxation only on income received in Malaysia, not on foreign assets bought decades ago [1, 2, 3, 4]. The court found it unreasonable and unlawful to require Na’imah to produce documents related to property acquisitions from 20 to 30 years prior, noting tax records are only required to be kept for seven years [1, 3, 4].
Na’imah and her late husband had previously settled RM31.498 million in additional tax jointly for the assessment years 2017, 2018, and 2019 in November 2023 [1, 3, 4]. The larger RM313.8 million claim appeared to arise after the disposal of these foreign properties [1, 3, 4].
The court did not order costs for the judicial review [1, 2, 3, 4]. Upon the ruling, Na’imah said she felt vindicated, describing herself as a responsible and law-abiding taxpayer and praised the judiciary as a safeguard against abuses of public power: "The ruling today shows that the judiciary is a branch that taxpayer can rely on where there is an abuse of public authority" [1].
Her lawyer, Datuk S. Saravana Kumar, noted that she consistently maintained compliance and the court's decision affirms her position, adding the judgment underscores the judiciary’s role as an independent check on public authorities [2].
Na’imah had obtained leave to proceed with the judicial review on April 22, 2025, granted by then judge Shahnaz Sulaiman [1, 4]. The next procedural steps have yet to be announced.
