The Taxpayer’s Dilemma
The taxpayer, a property investment company, found itself locked in a tense legal battle. The conflict began when the tax authorities issued assessments under the Real Property Gains Tax Act (RPGTA) for the Year of Assessment (YA) 2021, based on valuations by the government’s Jabatan Penilaian dan Perkhidmatan Harta (JPPH). The taxpayer, however, was adamant that the JPPH valuations were flawed and that its private valuer’s report, prepared a year earlier, provided the correct market values for the properties in question.
“This can’t be right,” the company’s director said, holding the JPPH assessment in one hand and their private valuer’s report in the other. “They’ve overestimated the value and ignored our report entirely. We’ll challenge this.”
The Fight for Fairness
The taxpayer filed a judicial review application, arguing that the assessments were invalid because the tax authorities had failed to provide a copy of the JPPH valuation report at the time the decision was made.
In court, the taxpayer’s lawyer argued passionately, “Your Honour, how can my client contest an assessment without knowing the basis of the valuation? The authorities have a duty to provide reasons and ensure transparency in their decision-making. Anything less undermines natural justice.”
The tax authorities fired back, asserting, “There is no statutory obligation to provide the valuation report before issuing the assessments. The law is clear—any disputes about assessments should be resolved before the Special Commissioners of Income Tax, not through judicial review. This application is procedurally misplaced.”
The courtroom buzzed with tension as both sides presented their written and oral arguments. The taxpayer’s team pressed on, emphasizing that the JPPH valuation was only provided after the judicial review was filed, calling it “an afterthought” and a breach of fairness.
The Judgment
The High Court deliberated carefully, weighing the principles of natural justice against the procedural framework of the RPGTA. Finally, the judge delivered the ruling.
“After considering the submissions, this court finds that the taxpayer’s grievance is valid. The Revenue’s failure to provide the JPPH valuation report at the relevant time undermines the taxpayer’s ability to contest the assessment effectively. This court allows the judicial review application with costs of RM3,000 to the taxpayer.”
The taxpayer’s team breathed a sigh of relief. Justice had prevailed, but the Revenue still had 30 days to appeal the decision.
The Lesson Learned
This case highlights the delicate balance between statutory obligations and natural justice in tax matters. Transparency and proper communication are critical to maintaining fairness in taxation.
For taxpayers, the lesson is clear: always ensure that disputes are backed by strong evidence and a thorough understanding of procedural rights. For tax authorities, the takeaway is equally vital—upholding transparency and fairness is not just a legal obligation but a cornerstone of trust in the tax system.
The battle over property valuations serves as a reminder that in taxation, clarity, fairness, and diligence must always guide the process, ensuring a just outcome for all parties involved.
