The government has offered a general explanation as to why former federal territories minister Tengku Adnan Tengku Mansor could settle his tax arrears suit with the Inland Revenue Board (IRB) by paying RM40.3 million, nearly RM17 million less than initially sought by the Income Tax Department.

Finance Minister Tengku Zafrul Abdul Aziz said the IRB can impose an additional tax on any taxpayer after it conducted a tax audit or investigation.