Hidir Reduan Abdul RashidPublished: 6:24 pm | Modified: 7:17 pmA+A–
The RM1.69 billion tax suit against Najib Abdul Razak is an attempt to eject him from the political arena following his immense contribution to the Opposition’s victory in five by-elections, the Kuala Lumpur High Court heard.
Najib’s lead counsel Muhammad Shafee Abdullah (photo) raised this allegation concerning the former finance minister’s application to stay a legal action by the government through the Inland Revenue Board (IRB).
Najib, who was former prime minister, is seeking the stay pending his tax reassessment appeal with the IRB appeal board.
During submissions before Justice Ahmad Bache this afternoon, Shafee argued that the motive to oust Najib out of politics was allegedly evident during the rushed manner in which the suit was being carried out by the IRB, especially in its ongoing bid for a court order for summary judgment against Najib.
According to Order 14 of the Rules of Court 2012, summary judgment is a court order to issue a final ruling in a legal action if there is a clear-cut case that the defendant has no defence to the suit.
Shafee said Najib has an ongoing appeal with the IRB’s appeal board to reassess the calculation of his tax.
“Why the rush to summary judgment? The obvious conclusion is so that he (Najib) can be declared bankrupt and ousted from the political arena,” Shafee said.
“Why the hurry to push the matter to the extent to achieve for someone else’s benefit (Shafee did not clarify who he meant by this)?
“Once he is declared bankrupt, politically he will be gone. We are raising clear judicial notice here.
“My client has been instrumental in the last five by-elections (victories for the Opposition), where he has become popular. Is this (tax suit and seeming hurry to rush for summary judgment) a mala fide situation to prevent my client from continuing (in politics)?” Shafee rhetorically asked the court.
The lawyer was referring to the five recent by-election victories by the BN opposition coalition, with the Kimanis polls on Jan 18 being the fifth one.
During open-court proceedings, DP Naban — a private lawyer appointed by IRB — countered that Najib’s stay application was premature. He said the defendant still needed to pay the RM1.69 billion in total tax sought by the IRB while waiting for the outcome of tax-reassessment appeal with the IRB appeal board.
Naban, who specialises in tax matters, argued that this is because Section 103 of the Income Tax Act read with Section 106 of the Income Tax Act 1967, requires that a person pays assessed tax on the due date regardless of whether he is appealing for tax-reassessment with the IRB appeal board or not.
Section 106 empowers the IRB to initiate a civil suit to recover any tax due by an assessed person.
After several hours of submissions from both parties that went on till afternoon, Ahmad set Feb 28 for decision on Najib’s application to stay the tax suit.
If Najib does not succeed in his stay application, the court will proceed with the IRB’s application for summary judgment in the tax recovery suit against the defendant (Najib).
The government filed the suit against Najib on June 25, last year.
It sought over RM1.69 billion from the former premier, with an annual five percent interest rate beginning from the date of judgment, as well as costs and other relief deemed fit by the court.
In its statement of claim, the government said Najib had failed to pay income tax from 2011 to 2017 within the stipulated 30-day period after assessment notices were issued.
As such, the amount owed each year increased by 10 percent.
It also said Najib was given 60 days to pay the taxes, together with the 10 percent increase, but he failed to do so.
Following this, Najib was slapped with another five percent increase in the 10 percent hike, bringing the total amount of income tax due to RM1,692,872,924.83.
The final amount owed each year is as follows:
25 July 2019
Lawyer: Income tax demand will bankrupt Najib, disqualify him as MP
Former prime minister Najib Abdul Razak…will file an application for a stay of the proceedings of Inland Revenue Board (IRB)’s lawsuit seeking him to pay RM1.69 billion in income tax, pending an appeal on the tax assessment to IRB.
Najib’s lawyer Muhammad Farhan Muhammad Shafee told the media that the IRB’s lawyers indicated to the Kuala Lumpur High Court that they were also planning to file an application for summary judgment (notwithstanding that there is an appeal on the tax assessment).
Summary judgment means a judgment entered by a court for one party upon another party’s motion based on facts that have been provided without going for a full trial.
“Today was the case management for the tax suit which I attended via e-review. We indicated to the court that we are intending to file a stay of these proceedings pending our appeal on the assessment to IRB.
“This is an unfortunate case of pay now talk later, except pay now is to the tune of RM1.69 billion which will effectively bankrupt my client and disqualify him as a member of Parliament.
Hence why we are filing for a stay of proceedings of this matter pending the resolution of the assessment,” he said.
Today’s e-review was held before High Court Deputy Registrar Nurliana Ismail.
Muhammad Farhan said the court fixed Aug 30 for the next case management before Nurliana.
On June 25, the government through IRB filed the suit against Najib seeking him to pay a total of RM1,692,872,924.83, with interest at 5% a year from the date of judgment, as well as cost and other relief deemed fit by the court.
1 April 2019
#1MDB: The Inland Revenue Board has slapped Najib Razak with an extra tax bill of around RM1.5 billion for 2011-2017, the Edge reports
KUALA LUMPUR: The Inland Revenue Board (IRB) has slapped Datuk Seri Najib Razak with an extra tax bill of around RM1.5 billion for 2011-2017.
Sources say the amount is on top of what the former prime minister had paid based on his declared income for that seven years.
The IRB sent a letter to Najib just over a week ago stating the extra tax he has to pay, sources say.
Based on its investigations, the IRB has assessed that Najib had not declared taxable income of close to RM4 billion for the period. Sources say the amount included the infamous RM2.6 billion that Malaysian and the US investigators say originated from 1Malaysia Development Bhd (1MDB).
Najib, who faces numerous 1MDB-related charges over billions that went into his account, has insisted that the money was a donation from the government of Saudi Arabia.
Tax experts say that donations are subject to income tax, so regardless of whether the billions that went into his bank account is proven to be stolen or donation, Najib would have already committed an offence for not declaring it as income.
“All incomes are taxable, whether legitimately earned or not,” says one tax expert when asked if stolen money is subject to tax.
“If the income is illegal proceeds, it is up to other agencies like the police or Malaysian Anti-Corruption Commission to investigate if a crime has been committed.
“As far as IRB is concerned, it’s subject to income tax,” he said.
After months of delay, the trial for the first set of charges against Najib over SRC International Sdn Bhd will start on Wednesday.
SHOCK RM1.5 BILLION TAX BILL FOR NAJIB – RM2.6 BILLION ARAB ‘DONATION’ RETURNS TO BITE MO1 IN THE BUTT: NO WONDER ‘BOSSKU’ SO UPSET THESE DAYS – FROM ‘DAP PEOPLE’ TO ‘PROVOCATION’ – PERHAPS EX-PM SHOULD FOCUS ON WHATEVER HIDDEN OVERSEAS ASSETS HE HAS https://t.co/WeSXwNGXGK