Malaysia

Najib, son get leave to appeal against unpaid tax ruling

Court allows bid to overturn order that ex-PM pay RM1.69 bil, Datuk Nazifuddin Najib pay RM37.6 mil

Updated 4 years ago · Published on 10 May 2022 3:15PM

Najib, son get leave to appeal against unpaid tax ruling
Former PM Datuk Seri Najib Razak and his son Datuk Nazifuddin Najib are seeking a court order to set aside the summary judgment ordering them to pay income tax to the Internal Revenue Board. – The Vibes file pic, May 10, 2022

PUTRAJAYA – Former prime minister Datuk Seri Najib Razak and his son Datuk Nazifuddin Najib can appeal to the Federal Court over a summary judgment entered against them regarding the payment of income tax, amounting to RM1.69 billion and RM37.6 million respectively, to the Inland Revenue Board (IRB).

This follows a unanimous decision today by a three-member bench led by chief justice Tun Tengku Maimun Tuan Mat to grant leave to applicants Najib and Nazifuddin to appeal against the Court of Appeal’s decision.

“It is our unanimous decision that the requirements of Section 96 (a) and (b) of the Courts of Judicature Act 1964 (CJA) have been met in terms of Enclosure 1 (motion for leave to appeal),” said Tengku Maimun who presided with Federal Court judges Datuk Nallini Pathmanathan and Datuk Mary Lim.

Sections 96 (a) and (b) of the CJA state that leave would only be given by the Federal Court or Court of Appeal in any civil cause or matter involving a question of general principle decided for the first time, or a question of importance upon which further argument and a decision of the Federal Court would be to public advantage or from any decision as to the effect of any provision of the Constitution including the validity of any written law relating to any such provision.

The former prime minister and his son are seeking leave to file an appeal against the summary judgement obtained by IRB to recover more than RM1.7 billion in tax arrears from them. 

Two separate high courts had allowed the IRB’s applications to obtain a summary judgment in order to recover tax arrears of RM1.69 billion from Najib and RM37.6 million 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 conducting a full trial and calling witnesses.

Both Najib and Nazifuddin lost their appeal in the Court of Appeal on September 9 last year, where they bid to set aside the summary judgment.

The appellate court, however, granted the applications by both men to temporarily halt (interim stay) the summary judgment order pending the hearing of their leave to appeal application before the Federal Court.

In civil cases, litigants must first obtain leave before they can proceed with their appeals in the Federal Court. 

Earlier, counsel Tan Sri Muhammad Shafee Abdullah, who is representing Najib and Nazifuddin, submitted that the IRB’s conduct is in bad faith, and that it is clear that IRB is seeking to bankrupt his clients even before the Special Commissioners of Income Tax can hear the merits of their defence to the additional tax assessments raised against them.

The IRB was represented by IRB’s deputy solicitor Hazlina Hussain while counsel Anand Raj from the Malaysian Bar was amicus curiae.

Meanwhile, another member of Najib and Nazifuddin’s legal team, Wee Yeong Kang, when contacted said they would file a notice of appeal as soon as possible. – Bernama, May 10, 2022

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