Lawyer: Najib not yet a bankrupt
KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak is not yet a bankrupt despite his alleged failure to pay the Inland Revenue Board (LHDN) RM1.69bil in additional income tax arrears.
His lawyer Wee Yeong Kang said deputy registrar Ida Rahayu Sharif informed parties that no act of bankruptcy had occurred at the stage when the case was brought up for case management yesterday.
During the online proceeding, Wee said he objected to a suggestion by LHDN’s counsel for the act of bankruptcy to be recorded by court immediately.
He said the court had instructed Najib to file an application to stay the bankruptcy proceeding and to set aside the bankruptcy notice against the Pekan MP before May 24.
“We need to file a summons in chambers to set aside the bankruptcy notice,” he said when contacted.
Another case management was also fixed on the same day, May 24, to update the court on the status of the various applications and affidavits, after which, a hearing date would be fixed.
Athari Faris Ammery Hussein appeared for LHDN in the proceedings.
The government, through LHDN, had filed the bankruptcy notice against Najib on Feb 4, following a ruling from a High Court that ordered Najib to pay his tax arrears.
Based on the notice, Najib has to pay RM1.69bil with a 5% interest rate per annum on the total balance from July 22, 2020 (date of the High Court’s decision) to Feb 4, 2021, and the total payable amount as of the latter date was RM1,738,804,204.16.
On July 22 last year, the High Court ruled that Najib had to pay LHDN RM1.69bil in additional tax and penalties for the period 2011 to 2017, after allowing the LHDN’s application to enter a summary judgment against him.
A summary judgment is when the court decides a particular case summarily, without calling witnesses to testify in a trial.
Najib is appealing against the High Court’s decision and the appeal would be heard at the Court of Appeal on June 16.
Pursuant to Section 103 (2) of the Income Tax Act 1967 (ITA), a person ordered to pay the assessment has to settle the payment to LHDN even if an appeal has been filed.