KUALA LUMPUR: The Inland Revenue Board (IRB) is all set to proceed with its case to recover RM1.7 billion in unpaid taxes from former prime minister Datuk Seri Najib Razak and his son, Nazifuddin, following the recent Federal Court judgment that they have to pay up.
IRB spokesperson Ranjeet Kaur said the IRB had all this while waiting to proceed with its case against the duo and the court ruling had now paved the way for the case to proceed.
"With the Federal Court decision, IRB can now proceed with our case which had been put on hold after Najib and his son obtained a stay.
"The execution of judgment is a normal process which the IRB takes to recover whatever amount that is due and payable. The debtor has to pay the outstanding amount or arrange for a scheduled payment," she said briefly to the New Straits Times.
Yesterday, the top court ruled that Najib and Datuk Nazifuddin must settle RM1.69 billion and RM37.6 million in unpaid taxes and penalties respectively.
Judge Datuk Nallini Pathmanathanan made the ruling after dismissing the father and son's appeal to quash a High Court's decision ordering them to pay up.
Nallini ruled that the 'pay first, talk later' principle which IRB works on needs to be upheld.
Najib, who is serving a 12-year jail sentence in connection with the SRC International case, and his son had appealed against the High Court's summary judgement against them in the IRB suit over taxes they purportedly owed the board.
Nallini, when reading the unanimous judgement, said 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.
She said the IRB is levying tax on the appellants in the same manner that it does for all citizens of the nation.
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.
Najib was ordered to pay the sum.
The government, through the IRB, filed the suit against Najib on June 25, 2019, asking him to settle the unpaid tax with interest at 5 per cent, a year from the date of judgement, as well as costs and other relief deemed fit by the court.
On July 6, 2020, the High Court ordered Nazifuddin, 38, to pay RM37,644,810.73 in unpaid taxes to the IRB.