KUALA LUMPUR – The high court was today told that there was no political interference in the Inland Revenue Board’s (IRB) bankruptcy proceedings against former prime minister Datuk Seri Najib Razak.
Senior revenue counsel Norhisham Ahmad said the agency treated Najib’s case just as it would any other case involving taxpayers.
“There was no political interference. We waited since July 2020 for Najib to come and discuss any mode of payment after a summary judgment was issued, but nothing was done.
“People will say we sat on it,” he said before judge Datuk Ahmad Bache at a virtual hearing of Najib’s application for a stay of execution of the high court ruling granting IRB’s request for a summary judgment against the Pekan MP over his RM1.69 billion tax arrears.
Najib’s lawyer, Tan Sri Muhammad Shafee Abdullah, argued that his client will lose everything if the bankruptcy notice against him is allowed.
“He will lose his pension, his political standing, and his properties may be auctioned off,” said Shafee, adding that they tried to negotiate with IRB on the payment of the arrears, but the negotiations were terminated and the agency proceeded with the bankruptcy notice.
Ahmad then fixed next Monday to deliver his decision on the stay bid via email.
On July 22 last year, the judge ruled that Najib must pay IRB RM1.69 billion in additional taxes and penalties for the assessment years 2011 to 2017, after allowing the agency’s application to enter the said summary judgment.
Najib has filed an appeal against the decision at 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 IRB even if an appeal has been filed.
On February 4, the government through IRB filed a bankruptcy notice against Najib as a debtor for failing to pay income tax amounting to RM1.69 billion as ruled by the high court last July.
Based on the notice, Najib has to pay RM1.69 billion with a 5% interest rate per annum on the total balance from July 22 last year – the date of the high court decision – to February 4 this year, with the total payable amount being RM1,738,804,204.16. – Bernama, June 11, 2021
