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Najib Loses in IRB Lawsuit, Compelling to Settle RM1.69 Bil Unpaid Taxes

Photo Credit to The Edge Markets | Insider

On Jun 25,2019, the government through IRB filed the suit against Najib seeking payment for 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.

And today The High Court allowed the Inland Revenue Board (IRB) to obtain a summary judgment against Datuk Seri Najib Razak compelling him to settle RM1.69 billion unpaid taxes, plus penalties and interest for 7 years (2011 to 2017).

Credit : The Star

According to NST, High Court Judge ruled that Najib, just like everyone else, is subject to the same provisions as ordinary people when it comes to tax matters.

“It is only fair that the defendant, who is a former Finance Minister and former Prime Minister, be subjected to the same provision of penalty, as everyone stands equal before the law,” he said, adding that under the tax recovery system of the country, courts cannot entertain any plea by a defendant when there is a debt due to the government.

The judge said once Najib was served with a Notice of Assessment, the court has no power to entertain any plea that the amount is excessive, incorrectly assessed, under appeal or whatsoever.

Credit : NST

“Thus, under the national tax scheme of Malaysia, of which the defendant being a former Finance Minister should be aware, once the Notice of Assessment is served, the tax becomes due and payable.

“The court cannot entertain any plea that the tax claimed is wrongly assessed, excessive, under appeal etcetera,” he said, adding previous case laws had stated that while the pay first and talk afterwards provision may be harsh, it was intended to curb incidences of tax evasion,” Judge added.

It also said Najib was given 60 days to pay the taxes, together with the 10% increase, if failed to do so, reported by The Star.