Najib and son fail to stay bankruptcy proceedings brought by LHDN

KUALA LUMPUR: Datuk Seri Najib Razak and his son Datuk Nazifuddin have failed to stay bankruptcy proceedings initiated by the Inland Revenue Board (LHDN) to claim RM1.69bil and RM37.6mil respectively in unpaid taxes.

This follows the High Court's dismissal of Najib and Nazifuddin's application for a stay on the proceedings here on Monday (July 29).

Lawyer Muhammad Farhan Muhammad Shafee, who represented Najib and Nazifuddin, told the press 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, former prime minister 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.

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"The merits of the tax assessment have not yet been heard by the SCIT," he said when met by the press after proceedings ended.

However, with the High Court's decision read by deputy registrar Kamarul Aris Kamalluddin, the LHDN can now go ahead with the bankruptcy proceedings.

Muhammad Farhan said they would be appealing the dismissal.

In 2020, two separate High Courts allowed LHDN's applications to enter a summary judgment to recover tax arrears of RM1.69bil from Najib and RM37.6mil from Nazifuddin for the period between 2011 and 2017.

A summary judgment is obtained when the court decides on a case through written submissions without a full trial and without calling witnesses.

ALSO READ: Najib, son have to pay over RM1.7bil

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 per annum on the total balance from July 22, 2020 (the date of the High Court decision) to Feb 4, 2021, which is RM45.9mil and costs of RM15,000. As of Feb 4, 2021, the amount payable stood at 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.