NG CHII CHONG v NG CHII SHIANG

wa-24ncvc-5246-11-2023 High Court (Mahkamah Tinggi) 9 June 2024 • WA-24NCvC-5246-11/2023 • 15 min read

Catchwords

Disposition of property in a will is void as against his creditors if done without paying the testator’s debts and liabilities – Creditors have priority by virtue of S.67(1)(a) Probate & Administration Act 1959 Act – S.74 Income Tax Act 1967 – Executors of deceased person are assessable and chargeable for tax payable by the deceased – Executors of a deceased individual prohibited from distributing assets of the estate unless they have made provision for payment in full of any tax payable by the deceased – Executors may be held jointly and severally liable to pay a penalty equal to the amount of the tax if they distribute without making provisions for tax to be paid – The Government, as a creditor for outstanding taxes, has an interest in the deceased’s Estate for payment of outstanding taxes – Entry of Registrar’s Caveat pursuant to application by Inland Revenue Board justified – Executor or Administrator must utilise properties of a deceased person to settle taxes first before distribution of the balance in accordance with the will – Pro rata formula applicable for payment of the deceased’s debts and liabilities by the beneficiaries if insufficient money owned by the Estate – Beneficiary who demands immediate transfer of property must put up security to stakeholders pending the outcome of claim by the executor – No filial support law in Malaysia unlike Singapore which has the Maintenance of Parents Act of 1995 – Issue as to whether executor could claim contribution from beneficiaries to support the deceased’s widow

Judges (1)

Gan Techiong Delivered

Counsel (5)

Amin-Tan & Co. Firm Chambers of Richard Ho & Yap Firm Ammar Bin Ghalip Counsel Applicant Faeq Bin Fuad Counsel Applicant Richard Ho Counsel Respondent

Parties (2)

Ng Chii Chong Applicant Ng Chii Shiang Respondent

Statutes Cited

Income Tax Act 1967 (Cap 53)
Rules of Court 2012

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-24ncvc-5246-11-2023)