KUALA LUMPUR (Sept 12): The High Court has set Nov 8 to deliver its decision on ex-finance minister Lim Guan Eng's defamation suit against former prime minister Tan Sri Muhyiddin Yassin concerning tax breaks for Tan Sri Syed Mokhtar Al-Bukhary's charity foundation Yayasan Albukhary.

Judicial Commissioner Roz Mawar Rozain set the date on Thursday following submissions from both parties.

Lim is suing Muhyiddin over his comments made in March that Lim had allegedly withdrawn tax breaks for the Islamic philanthropic organisation.

The Bagan Member of Parliament claimed that the statements insinuated that he had abused his position and power as the then finance minister by authorising the Inland Revenue Board (IRB) to impose tax and penalties on a charitable organisation when it should not be taxed.

The statements, he claimed, also implied that he was racist and was intentionally targeting the Islamic organisation.

The DAP chief also contended that the comments made were to use Lim as a "scapegoat" for the ex-PM's "political survival" as Muhyiddin was facing the possibility of criminal charges in court for corruption and money laundering linked to the Jana Wibawa programme.

During a brief trial in July, Lim testified that the issue never came before him while he was finance minister. He had also produced a letter from Yayasan Albukhary signed by Syed Mokhtar to Muhyiddin in February 2021 over the withdrawal of the tax-exemption.

The contents indicate that the tax break was revoked "recently". Lim left office in February 2020, following the fall of the Pakatan Harapan (PH) government, and Muhyiddin became prime minister in March 2020.

While on the stand, Muhyiddin said the comments were not targeted at Lim. The Bersatu chief testified that he had no malicious intent as he was merely stating the facts that there was an appeal on the tax-break forwarded to him.

He said Yayasan Albukhary was given tax breaks under the Barisan Nasional (BN) government, but he had received an appeal from the organisation in 2021 when he was the prime minister under the Perikatan Nasional (PN) coalition.  

Muhyiddin also asked why would the foundation approach him years later if the tax breaks had continued under the previous administration, PH.

The Pagoh MP said he had subsequently forwarded the letter to then finance minister Tengku Datuk Seri Zafrul Abdul Aziz for his consideration, who allowed the appeal sometime in 2021.

Ministry of Finance (MOF) official Hazlan Abdul Aziz had also taken the stand, testifying that there were documents indicating that Lim, through MOF, said they would not validate tax breaks given to the Islamic charitable organisation during his tenure in office.

A total of five witnesses took the stand. 

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