FORMER prime minister Najib Razak was issued a bankruptcy notice from the Inland Revenue Board (LHDN) for failure to settle outstanding taxes, Malaysiakini reported.

The notice was for unpaid taxes amounting to RM1.7 billion.

It was reported that LHDN officers came to Najib’s residence in Bukit Tunku yesterday to hand the notice personally.

In July last year, Najib was ordered by the court to pay the IRB RM1.69 billion in unpaid taxes for the years 2011 to 2017.

Kuala Lumpur High Court judge Ahmad Bache ruled in favour of IRB’s application for a summary judgment, which bypasses a full trial including testimony by witnesses. 

The judge said Najib had failed to pay the total amount, including late payment penalties, and that the defendant must face “the same penalty as everyone is equal before the law.”

Ahmad agreed with IRB’s submission that under Section 106(3) of the Income Tax Act 1967 (ITA), the court shall not entertain any plea for such as whether the amount of tax sought was excessive, incorrectly assessed or under appeal.

“This provision of ‘pay first, talk later’ may arguably be a harsh one, but it is an intentional provision of the legislature, having regard to the incidence of tax evasion,” Ahmad had said.

IRB filed its recovery action under ITA in 2019 against Najib, who was also finance minister, for the payment of additional income tax for the assessment years 2011 to 2017.

The amount sought – RM1,692,872,924.83 – included late-payment penalties. – April 6, 2021.