Court Quashes RM313.8m Tax Demand Against Daim's Wife

SHAH ALAM, Aug 7, 2026 – The High Court yesterday ruled in favour of Naimah Khalid, quashing the Inland Revenue Board’s (LHDN) demand for RM313.8 million in additional tax. Judge Evawani Farisyta Mohammad held that LHDN had acted beyond its powers under the Income Tax Act when it issued the notice for the 2018 assessment year.

Evawani explained that the Act applies only to locally sourced income or foreign income remitted into Malaysia. Several US properties forming the basis of LHDN’s assessment had been sold, but no evidence was presented to show proceeds were brought into Malaysia.

Tax Demand

“The applicant cannot be taxed unless she received income here,” she said, adding that any taxable income from those sales should have been assessed nearly 30 years ago.

The court also found that issues relating to Naimah’s shareholdings in Ilham Baru Sdn Bhd and alleged unreported income used to settle loans involving Ilham Baru, Ilham Tower Sdn Bhd and Welberton Private Equity Corp had already been resolved in 2018, with Daim Zainuddin having paid the relevant taxes. Evawani concluded the 2018 notice amounted to double taxation.

Naimah welcomed the ruling, stressing she had always been a responsible taxpayer.

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