Kota Kinabalu: The Inland Revenue Board (IRB/LHDN) successfully applied to the High Court, here, to wind up property developer Sagajuta (Sabah) Sdn Bhd over tax arrears amounting to RM8,589,950.75.Sagajuta is the developer of 1Borneo shopping mall, 1Borneo condominiums and hotel and Warisan Square. Its latest project 1Sulaman condominiums had been abandoned since 2011, before the wiring of the units was supposed to commence.
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The project started in 2009 and was supposed to have been completed in 2012. Many of the buyers of the units were first-timers who took out bank loans and are not only servicing these loans but also paying for premises they are currently renting. Judicial Commissioner Datuk Douglas Cristo Primus Sikayun granted the application on Monday.
Pursuant to the winding up petition advertised in the Daily Express and Overseas Daily Chinese News on Feb. 25 and 26, 2016, the High Court here granted the petitioner Inland Revenue Board or Lembaga Hasil Dalam Negeri Malaysia (LHDN), Kota Kinabalu's prayer to fold up Sagajuta (Sabah) Sdn Bhd due to its insolvency or inability to promptly settle its outstanding tax debts.Counsels Norbett Yap and Eow Ee Pei of Norbert Yapp & Associates representing Sagajuta (Sabah) Sdn Bhd had applied for a postponement at the court hearing with regard to the Order In Terms of the Winding Up Petition and others because the application by Sagajuta for a reduction in tax and penalty was rejected by LHDN.
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Sagajuta's counsel also informed the court that the company was in the time consuming process of monetising its many high value assets to pay its dues to LHDN and others.LHDN lawyers Afidah Nor Binti Ariffin and Noor Faizah b Talip strongly objected to any postponement, saying Sagajuta's reasons were irrelevant to the winding up petition.
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LHDN contended that if it was true that Sagajuta was solvent and owned a lot of high value assets, it should be able to pay its taxes and due debts promptly, with all its cheques issued honoured for payments since last week.
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The court after hearing all oral and written submissions, affidavits of all the parties involved, including other creditor claimants' lawyers ruled that Sagajuta was insolvent and granted all the prayers of the petitioner LHDN under Suit BKI-28NCC-22/6-2015.LHDN started their legal action against Sagajuta (Sabah) Sdn Bhd since Oct. 7, 2013 with summons and statement of claims for RM28,351,418.65 for tax arrears for the years of assessment – 2005, 2006, 2007, 2008, 2009 and 2010 and reassessed tax penalty increase of RM7,679,516.25.
