TAX lawyer D.P. Naban is no longer leading the prosecution in Putrajaya’s RM1.69 billion claim of unpaid taxes against former prime minister Najib Razak at the Kuala Lumpur High Court.

The Malaysian Insight understands that the Attorney-General’s Chambers will appoint a replacement soon.

It is learnt the switch in prosecutors follows serious allegations of tax offences that have rocked law firm Lee, Hishammuddin, Allen & Gledhill, which created major schism in the firm. Naban was a senior partner of the firm when the allegations surfaced.

The allegations allegedly led to disputes among the partners over revenue and tax, which threaten to break up the top Malaysian legal firm.

Naban confirmed yesterday he is out of the prosecution team.

Sources told The Malaysian Insight that Naban’s position on the prosecution team became untenable once allegations of tax offences in the law firm surfaced.

The Inland Revenue Board (IRB) will make an announcement soon on the replacement.

Najib earlier challenged Naban’s appointment to appear for the IRB and wanted the senior lawyer to show his letter of appointment.

The former prime minister, however, withdrew his challenge after Naban’s letter of appointment was produced in court and shown to Najib’s lawyers.

The government, through the IRB, filed the suit against Najib seeking RM1.69 billion in unpaid taxes, at a 5% interest per year from the date of judgment, with costs and reliefs deemed fit by the court.

Lawyers said the civil suit to recover RM1.69 billion in additional taxes is probably the largest imposed against an individual in the country.

The suit was initiated after Najib failed to act on IRB’s initial demand in March last year for additional tax assessments of RM1.47 billion.

This resulted in a 10% hike of RM147 million in April and another compounded 5% hike of RM80 million in May.

The 10% increase was imposed under Section 103 of the Income Tax Act after Najib failed to pay the initial RM1.47 billion within 30 days of the date the assessment notice was issued.

The court has set February 28 for decision on Najib’s application to stay the tax suit.

If Najib fails in the stay application, the court will proceed with the IRB’s application for summary judgment in the tax recovery suit. – February 20, 2020.