Sunday, September 26, 2021

Dec 7 hearing for Najib’s bid to strike out bankruptcy notice

His application to stay the bankruptcy proceedings will be heard on the same day.

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The application by former prime minister Najib Razak 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 will be heard on Dec 7.

Najib’s lawyer Wee Yeong Kang said this when contacted by reporters after case management via e-review today, before High Court deputy registrar Ida Rahayu Sharif.

Today’s proceedings were also attended by tax counsels Siti Aisyah Yusoff and Athari Faris Ammerry Hussein, who were acting for LHDN.

“The same date (Dec 7) is set to hear Najib’s application to stay the bankruptcy proceedings while waiting for the disposal of his appeal in the Court of Appeal against the High Court decision or until the judgment debtor (Najib) appeal at the Special Commissioners of Income Tax is fully completed,” said Wee.

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 political conspiracy to destroy his political career.

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 at 5% per annum on the total balance from July 22, 2020 (the date of the 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 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.

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.

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