KUALA LUMPUR, The Inland Revenue Board (IRB) has initiated legal action against businessman Datuk Seri Muhammad Adlan Berhan to recover RM2.589 million in outstanding taxes and penalties.
The lawsuit stems from a composite tax assessment of RM3 million issued against Adlan — who is the son-in-law of former prime minister Tan Sri Muhyiddin Yassin — for the year of assessment 2021. The IRB issued a composite notice on March 1, 2023, and said the document was sent by post and not returned.
According to the IRB’s statement of claim, Adlan made partial payments totalling RM660,000, comprising RM510,000 and a subsequent RM150,000, leaving an outstanding balance of RM2.49 million. As the balance remained unpaid after 30 days, a 10% penalty amounting to RM249,000 was imposed, bringing the total amount owed to RM2.589 million. The IRB said Adlan’s continued failure to settle the outstanding sum prompted the tax authority to file the suit on July 31.
On Sept 20, Adlan’s solicitors from Mathews Hun Lachimanan informed the court that their client was in the process of negotiating a full settlement and requested an extension to file his statement of defence by Oct 29. The IRB did not object to the application.
Case management was conducted on Monday (Oct 27) before High Court Deputy Registrar Norliza Hussin and has been rescheduled to Dec 8. Adlan was previously reported to have left Malaysia in May 2023 and was described as a fugitive. However, he denied the claim in a statement issued through his lawyer in August last year, asserting that he was abroad for business purposes.
Recent reports alleged that Adlan was sighted in the company of Middle Eastern dignitaries and had been travelling for leisure, including to Thailand, where he was seen golfing and visiting a shooting range. Home Minister Datuk Seri Saifuddin Nasution Ismail has since confirmed that Adlan’s passport has been revoked.
