KUALA LUMPUR: Datuk Seri Najib Razak has been served with a bankruptcy notice following his failure to pay the RM1.69 billion in additional income tax arrears to the Inland Revenue Board (IRB).
The notice was filed by the board at the High Court, here, on Feb 4.
According to the notice sighted by the New Straits Times, the former prime minister now has to pay RM1.69 billion with interest at five percent, a year 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.
IRB had also in the notice said if Najib does not comply with the requests stated in the notice, a bankruptcy proceeding could be instituted against him.
On July 22, last year, the High Court allowed the IRB’s application for a summary judgement to be entered against Najib in its suit to recover the RM1.69 billion in taxes from the latter for the period between 2011 and 2017.
Subsequently, he was ordered by the court to pay the amount.
Najib had on March 31 applied for a stay of the court’s order for him to settle the RM1.69 billion pending his appeal at the Court of Appeal against the summary judgement order.
The notice of appeal was filed on July 27, last year.
During case management of the tax suit today, judge Datuk Ahmad Bache fixed June 11 for hearing of the stay application.
Najib’s lawyer Wee Yeong Kang told the court that the defendant (Najib) will file additional affidavits which will include the bankruptcy notice.
“We are filing additional affidavits on April 8 and and will put in the (IRB’s) bankruptcy notice,” he said.
The judge then ordered for parties to file in their written submissions on May 27 and submit their written replies on June 3.
Senior federal counsel Norhisham Ahmad and Al Hummidallah Idrus appeared for the government.
On June 25, 2019, the government, through IRB filed the suit against Najib asking him to settle the unpaid tax with interest at 5%, a year from the date of judgement, as well as costs and other relief deemed fit by the court.
The government claimed that Najib had failed to pay his income tax from 2011 to 2017 within the stipulated 30-day period after assessment notices were issued by the IRB.-NST