Najib, and son to pay unpaid tax of RM1.7 billion

PUTRAJAYA - Former prime minister Datuk Seri Najib Tun Razak and his son, Datuk Mohd Nazifuddin are required to settle over RM1.7 billion of unpaid tax for the years 2011 and 2017 to the Inland Revenue Board (LHDN).

This decision was reached after a five-member panel of the Federal Court here today, led by Tan Sri Abang Iskandar Abang Hashim, unanimously rejected the appeal of the former Prime Minister and Nazifuddin against LHDN's right to claim the tax amount.

The court upheld LHDN's decision for the immediate judgement of recovering the unpaid tax.

Also present were Judges Datuk Mohamad Zabidin Mohd Diah, Tan Sri Nallini Pathmanathan, Datuk Mary Lim Thiam Suan, and Datuk Abu Bakar Jais.

In this case, lawyer Tan Sri Muhammad Shafee Abdullah represented Najib and Nazifuddin, while Inland Revenue Board (LHDN) chief legal officer, Dr Hazlina Hussain represented the respondent.

However, Najib and Nazifuddin were absent during the proceedings.

Najib and Nazifuddin appealed after two High Courts in Kuala Lumpur in 2020 allowed LHDN's application to enter immediate judgment to recover the unpaid tax of RM1.69 billion from Najib and RM37.6 million from Nazifuddin for the period between 2011 and 2017.

An immediate judgement is when the court decides on a particular case through arguments without hearing witness testimony in a trial.

Najib and Nazifuddin's appeal was dismissed by the Court of Appeal on September 9, 2021.

On May 10, 2022, they obtained permission to proceed with the appeal to the Federal Court.

Najib and Nazifuddin's appeal to the Federal Court was decided based on nine legal questions.

On June 25, 2019, the government, through LHDN, filed a lawsuit against Najib, demanding that the Umno leader pay the outstanding income tax amount, a five percent annual interest from the judgement date, costs and other relief deemed reasonable by the court.

LHDN, on behalf of the Malaysian government, also filed a writ of summons against Nazifuddin on July 24, 2019, claiming that Najib's son had not paid income tax for an estimated seven years starting from 2011, as stated in the assessment notice dated March 15, 2019.

Najib and Nazifuddin also received bankruptcy notices from LHDN for failing to pay income tax as determined by the High Court.