PUTRAJAYA: The Inland Revenue Board (IRB) can now resume its bankruptcy notice hearing against incarcerated former prime minister Datuk Seri Najib Razak and his son Datuk Nazifuddin to recoup billions of ringgit in unpaid tax from the duo.
A source from the Attorney-General's Chambers (AGC) said the duo had exhausted their final avenue to overturn the High Court's decision compelling them to settle RM1.69 billion and RM37.6 million in unpaid taxes and penalties respectively.
"This is following the Federal Court's ruling yesterday that affirmed IRB's summary judgement compelling them to settle the amounts for the period between 2011 and 2017.
"Now we can proceed with the (bankruptcy) notice," the source said.
The top court, in an unanimous decision, ruled Section 103(1) of the Income Tax Act (ITA) provides that tax payable under an assessment shall be due and payable on the due date, regardless of whether the person appeals against the assessment.
The court said the present incarnation of the ITA was enacted by the legislature to facilitate the expeditious collection of government revenue and to deter tactical attempts from would-be tax evaders to delay the payment of outstanding taxes.
Najib and Nazifuddin were served with a bankruptcy notice two years ago following their failure to pay the disputed monies to the IRB.
According to the notice sighted by the New Straits Times, the former prime minister has to pay RM1.69 billion with interest at five per cent, for the period between July 22, 2020 and Feb 4, 2021 amounting to RM45.9 million from the date of the order of the summary judgement as well as costs of RM15,000.
This brings the accumulated sum to RM1.73 billion.
Meanwhile, Nazifuddin has to pay RM37.6 million with interest at five per cent for the period between July 6, 2020 and Feb 4, 2021, amounting to RM1.1 million from the date of the order of a summary judgement as well as costs of RM10,000.
This brings the accumulated sum to RM38.7 million.
On Sept 21, last year, Chief Justice Tun Tengku Maimun Tuan Mat, who chaired the Federal Court's three-member bench, allowed the duo's application for a stay of the High Court's ruling pending their appeal at the Apex court.
On July 22, 2020, the High Court allowed the IRB's application for a summary judgement to be entered against Najib in its suit to recover RM1.69 billion in taxes from the latter for the period between 2011 and 2017.
Meanwhile, on July 6 the same year, another High Court also ordered Nazifuddin, 39, to pay RM37,644,810.73 in unpaid taxes to the IRB.