Malaysia's ex-PM Najib served with bankruptcy notice over RM1.7b tax bill
- Fenny
- Apr 8, 2021
- 2 min read
Updated: Apr 9, 2021
The Inland Revenue Board (LHDN) has filed a bankruptcy notice against the former prime minister Datuk Seri Najib Razak following his failure to pay the RM1.69 billion in additional income tax arrears.
According to New Straits Times, The notice was filed by the board at the High Court, here, on February 4.
The former prime minister now has to pay RM1.69 billion with interest at 5%, a year between July 22, 2020, and Feb 4, 2021, amounting to RM45.9 million from the date of the order of the summary judgment as well as costs of RM15, 000.
Malay Mail reported that Najib has to pay RM17.4 billion in total included court fees amounting to RM15,000. -said LHDN
LHDN added that if Najib does not comply with the requests stated in the notice, bankruptcy proceedings can be taken against him.
On 22 July last year, Malaysia High Court ruled that Najib had to pay LHDN RM1.69 billion in additional tax and penalties for the period from 2011 to 2017. The ruling was made by the court following LHDN's application for a summary judgment
The government claimed that Najib had failed to pay his income tax from 2011 to 2017 within the stipulated 30-day period after assessment notices were issued by the LHDN.
Lawyer Muhammad Farhan Muhammad Shafee, who represented Najib, when contacted said the court had set May 5 for management of the case. He said that Najib has filed an appeal against the High Court’s decision in the Court of Appeal, which will hear the case on June 16.
Pursuant to Section 103 (2) of the Income Tax Act 1967, a person ordered to pay the assessment has to settle the payment to the LHDN even if an appeal has been filed.
The Civil High Court today set June 11 to hear Najib’s application for a stay on the High Court order, Bernama reported.
He wrote on the Facebook post, "How did it happen? This tax case was imposed on me by the Pakatan Harapan (PH) government and has no solid reason or merit whatsoever. It was then continued by the Perikatan Nasional (PN) government,"
"I am sure, the timing of this bankruptcy notice is related to three issues."
Citing surveys conducted by Universiti Utara Malaysia (UUM) and Utusan TV involving 60,000 respondents, he said that the majority wanted him to be premier again as compared to the incumbent Tan Sri Muhyiddin Yassin who ranked fourth.
The second and third issues, he claims, have to do with UMNO's decision to not cooperate with Bersatu nor PN in GE15 and a recent decision by a court where the prosecutor failed to prove the items and money seized were obtained from 1MDB funds.
He added that the bankruptcy notice would make him lose all his savings which he is currently surviving on and is used to pay his lawyers.- Source SAYS
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