Court Orders Najib to Pay RM1.69B in Owed Taxes

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Former prime minister Najib Razak was ordered by the court today to pay the Inland Revenue Board RM1.69 billion in unpaid taxes for the years 2011 to 2017.

Najib – Nazir Sufari TMI

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.

In his summary judgment, which took more than 30 minutes to read, 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, 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 be harsh but it is intentional of the legislature due to the high incidence of tax evasion in Malaysia,” Ahmad said.

The judge also dismissed and described as “misconceived” the constitutional arguments by Najib’s lawyers that Section 106(3), and other tax provisions usurped the judicial powers of the courts.

“If the taxpayer wishes to win any legal dispute, he must take his case to the Special Commissioner of Income Tax,” Ahmad added.

Najib, who turns 67 tomorrow, was not present in court. – TMI