KUALA LUMPUR: The High Court has dismissed an appeal by Datuk Seri Najib Razak and his son, Datuk Mohd Nazifuddin Najib, to stay bankruptcy proceedings against them.
The bankruptcy proceedings were initiated by the Inland Revenue Board (LHDN) following Najib and Mohd Nazifuddin's failure to settle tax arrears amounting to RM1.69bil and RM37.6mil, respectively.
Judicial Commissioner Suhendran Sockanathan @ Saheran Abdullah made the dismissal after finding that there was no reason to grant a stay.
"I don't see any other damages that would warrant a stay," he said here on Monday (Nov 17)
In his dismissal, JC Suhendran stated that the merits of a tax assessment were to be determined by the Special Commissioners of Income Tax (SCIT) and not by a court of law.
"The court's role is only to facilitate the collection and recovery of tax. The formula of 'pay now, dispute later' is again, to facilitate the collection of tax," he added.
An appeal to the SCIT, the judge said, did not prevent the collection process as it is within the framework of the Income Tax Act.
The court also ordered Najib and Mohd Nazifuddin to pay RM7,000 in costs, each.
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 a case based on written submissions, without holding a full trial or calling witnesses.
The government, through the revenue board, filed a bankruptcy notice in the High Court here on Feb 4, 2021, against Najib and Nazifuddin as debtors.
On Oct 16, 2023, the Federal Court ruled that the father and son duo must pay the arrears after dismissing their appeal to set aside the High Court's decision.
