Former prime minister Dr Mahathir Mohamad wonders whether Sungai Besar Umno division chief Jamal Md Yunos has paid taxes on the donations he received from his 'friends', which he planned to use to send his branch chiefs on a learning trip to Dubai.
Mahathir also asked the same of the RM1,000 that Jamal plans to pay to each of his branch chiefs and divisional delegates after he cancelled the trip and decided to pass on the money to them in compensation.
"According to Malaysian laws, all monies received are an income," Mahathir wrote in his blog tonight.
He added that as such, anything classified as income must be reported to the Inland Revenue Board (LHDN), and taxes paid accordingly.
As for donations, he said that only those paid to welfare organisations approved by LHDN can be exempted from tax.
Mahathir (photo) also pointed out that forms must be filled and the board informed. And if it is not exempted from tax, both the donor and recipient must pay taxes at their separate ends.
"Was the LHDN informed of the amount gifted by his (Jamal's) friends?
"Did the LHDN officially gave an exception to the good guy (Jamal) from paying taxes?
"And those who received the RM1,000 from the good guy (Jamal), will they report it to LHDN and pay taxes on it?" he asked.
"There are a lot of questions that need to be answered, but by my estimation, tens of thousands of ringgit must be paid by those who donated, tens of thousands by the good guy (Jamal), and thousands by those who Jamal gave to," he said, adding that the OSA should not be used to hide a crime, just because it is committed by a good guy.
If everything is above board, Mahathir said, then Jamal, his friends who donated to him and those who would receive his largess will have to file the matter with the LHDN and pay tax if they must.
Jamal announced the gift of RM1,000 cash each in lieu of cancelled plans to take the division’s branch chiefs overseas to Dubai during the divisional AGM for Sungai Besar Umno on Aug 31.
“Five months ago I promised to bring all 115 branch chiefs to Dubai, but only 80 of then agreed.
“As such, I cancel the offer and we will instead share the funds meant for the trip at RM1,000 each,” Jamal said to thunderous applause.
In fact, he said, all 646 delegates in attendance will receive RM1,000 each.
The payment for the delegates will be paid in two instalments of RM500, with the second instalment to be paid next year, he said.
The Sungai Besar Umno chief was hit with brickbats from opposition leaders who questioned the source of the funds for such a gift.
Jamal said the money for the trip was from donations from friends but he refused to disclose who, saying that no law required full disclosure on political donations.
