Federal Court stops IRB from forcing lawyers to open client accounts for audit | The Malaysian Insight

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Federal Court stops IRB from forcing lawyers to open client accounts for audit

THE Federal Court seven-member bench today dismissed the Inland Revenue Board’s filing to allow the board to demand law firms open client accounts for audit.

Justice Tengku Maimun said the IRB had failed to comprehend that the contents of a client’s account comprised monies and documents belonging to the client and made or given in the course of employing a solicitor for services. “This provides sufficient safeguard against persons trying to illegally evade the imposition of tax,” she said.

The Bar alleged that the documents and information sought by the IRB were protected by solicitor-client privilege and might not be made available to the IRB.

 

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