Najib applies to strike out bankruptcy notice in RM1.69 billion tax case

Former prime minister Najib Razak has applied to strike out a bankruptcy notice issued against him for failing to pay additional tax arrears of RM1.69 billion to the Inland Revenue Board (LHDN) as ordered by the High Court last year.

According to documents filed in court, Najib filed the application claiming that the notice issued by LHDN on Feb 4 this year was mala fide, onerous and an abuse of the court process.

He also claimed that the notice was part of a conspiracy to destroy his political career.

The case was fixed for e-review management today before High Court deputy registrar Ida Rahayu Sharif.

Najib’s lawyer Wee Yeong Kang, when contacted by reporters, said the application was filed on May 31.

“An application to stay the bankruptcy proceedings was filed on the same date while waiting for the disposal of Najib’s appeal in the Court of Appeal against the High Court decision.

“The court set July 22 this year for further case management,” he added.

Today’s proceedings were also attended by senior tax counsel Al-Hummidallah Idrus and tax counsel Muhammad Nabil Abdul Halim, acting for the LHDN.

The government, through LHDN, filed the bankruptcy notice at the High Court on Feb 4 this year against Najib as the debtor.

Based on the notice, Najib has to pay RM1.69 billion with interest of 5% per annum on the total balance from July 22, 2020 (date of High Court’s decision) to Feb 4, 2021, which is RM45.9 million, and RM15,000 in costs. The total payable amount as of the latter date was RM1,738,804,204.16.

On July 22 last year, the High Court ruled that Najib had to pay LHDN RM1.69 billion in additional tax arrears for the period of 2011 to 2017, after allowing LHDN’s application to enter a summary judgement against him.

A summary judgement is when the court decides a particular case summarily, without calling witnesses to testify in a trial.

Najib filed his appeal against the High Court decision at the Court of Appeal, which fixed June 16 to hear his appeal.

According to Section 103 (2) of the Income Tax Act 1967, a person ordered to pay the assessment has to settle the payment to LHDN even if an appeal has been filed.