Court allows application by Najib, Nazifuddin to postpone bankruptcy proceedings

KUALA LUMPUR: The High Court here on Thursday (May 19) allowed an application by Datuk Seri Najib Razak and his son, Datuk Mohd Nazifuddin, to postpone the bankruptcy proceedings against them for failing to settle their tax arrears with the Inland Revenue Board (LHDN) pending the disposal of their appeals at the Federal Court.

The father and son owed the LHDN RM1.69bil and RM37.6mil, respectively, in tax arrears.

Lawyer Wee Yeong Kang, representing Najib and Nazifuddin, when contacted by reporters said the court allowed his clients’ application during online case management before High Court Deputy Registrar Ida Rahayu Sharif.

The proceeding was also attended by counsel Athari Faris Ammerry Hussein, on behalf of the LHDN.

"The application to postpone the bankruptcy proceedings was made to enable the appeal of my two clients regarding a summary judgment obtained by the LHDN, which ordered them to pay the tax arrears, to be decided by the Federal Court," said Wee, adding that the court set Oct 4 for case management.

The government, through the LHDN, 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 RM1.69bil with 5% interest rate per annum on the total balance from July 22, 2020, (date of High Court decision) to Feb 4, 2021, which is RM45.9mil and costs of RM15,000. As of Feb 4, 2021, the amount payable is RM1,738,804,204.16.

As for Nazifuddin, he has to pay RM37.6mil with 5% interest rate per annum on the total balance from July 6, 2020 (date of High Court decision) to Feb 4, 2021, which is RM1.1mil and costs of RM10,000. As of Feb 4, 2021 the amount payable is RM38,758,370.93.

Najib and Nazifuddin failed in their appeal at the Court of Appeal on Sept 9, 2021, to set aside the summary judgments, but allowed their application to stay the judgment order pending the hearing of the application for leave to appeal in the Federal Court.

On May 10, the Federal Court granted leave to appeal to Najib and Nazifuddin regarding the judgment obtained by the LHDN in the tax arrears case. - Bernama

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