(Defendants' Application For A Stay Of Proceedings)

Kenneth St James JC:

Prelusion

[1] This is a tax case. The Plaintiff (LHDN) assessed an additional tax amount on the 1st Defendant (Company) for 2015. The Company lodged an Appeal against this additional assessment to the Special Commissioners Of Income Tax. The LHDN then took this civil suit against the Company, and against the Company's directors: the 2nd and 3rd Defendants. In response, the Defendants filed an Application to stay this civil suit, pending the "hearing and ultimate disposal" of their Appeal with the Special Commissioners. Should this suit and its proceedings be stayed pending the outcome of the Appeal before the Special Commissioners?

The Applicable Facts

[2] For the assessment year 2015, the LHDN imposed on the Company an additional tax payable of RM3,125,969.67. The LHDN issued to the Company a notice of assessment for the additional tax in October 2016. In November 2016, the Company filed the Appeal against this assessment. The Appeal is now pending before the Special Commissioners.

[3] While the Appeal is awaiting disposal, the LHDN filed this civil suit under the Income Tax Act 1967 (the Act).

The Relevan