KUALA LUMPUR (ANN/THE STAR) – Datuk Seri Najib Razak and his son, Datuk Nazifuddin, have been unsuccessful in their attempt to halt bankruptcy proceedings initiated by the Inland Revenue Board (LHDN), which seeks to recover MYR1.69 billion and MYR37.6 million in unpaid taxes.
This follows the High Court’s dismissal of their application for a stay on the bankruptcy proceedings yesterday.
Lawyer Muhammad Farhan Muhammad Shafee, who represented Najib and Nazifuddin, told the press that they had filed to stay the bankruptcy proceedings to allow the hearing on Najib’s tax assessment by the Special Commissioner of Income Tax (SCIT) to go on first.
He said at this point, Najib has yet to be declared bankrupt as he was only served with a notice of bankruptcy.
“This application was to stay the notice and subsequent proceedings because the issue of Najib’s tax (assessment) has not yet been fully resolved.
“The SCIT has not yet heard the merits of the tax assessment,” he said when met by the press after proceedings ended here yesterday.
However, the High Court’s decision, which deputy registrar Kamarul Aris Kamalluddin read, allows LHDN to proceed with the bankruptcy proceedings.
Muhammad Farhan said they would be appealing the dismissal with the High Court.
In 2020, two separate High Courts allowed the LHDN’s applications to enter a summary judgement to recover tax arrears of MYR1.69bil from Najib and MYR37.6mil from Nazifuddin for the assessment years between 2011 and 2017.
A summary judgement is obtained when the court decides on a case through written submissions without a full trial and without calling witnesses.
Through the LHDN, the government filed a bankruptcy notice in the High Court here on Feb 4, 2021, against Najib and Nazifuddin as debtors.
According to the notice, Najib was required to pay MYR1.69bil with a five per cent interest rate per annum on the total balance from July 22, 2020 (the date of the High Court decision) to Feb 4, 2021, which is MYR45.9mil, and costs of MYR15,000.
As of Feb 4, 2021, the amount payable is MYR1,738,804,204.16.
Nazifuddin has to pay MYR37.6mil with a five per cent interest rate per annum on the total balance from July 6, 2020 (the date of the High Court decision) to Feb 4, 2021, which is MYR1.1mil, and costs of MYR10,000.
As of Feb 4, 2021, the amount payable is MYR38,758,370.93.
