KUALA LUMPUR: Datuk Seri Najib Razak and his son Datuk Nazifuddin failed to stall the bankruptcy proceeding initiated by the Inland Revenue Board (IRB) to recoup RM1.7 billion in unpaid tax from the duo.
This is after the High Court here rejected the father and son's application (for postponement) today.
Lawyer Muhammad Farhan Shafee, who appeared for the duo, said they requested a postponement because they had filed an appeal for a tax reassessment with the Special Commissioners of Income Tax.
"We will appeal to the decision," he said briefly when after the proceeding.
The incarcerated former prime minister and his son has 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 last year.
This was after the Federal Court's ruling on Oct 16, 2023 that affirmed IRB's summary judgement compelling them to settle the amounts for the period between 2011 and 2017.
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 three 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 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.