Court Orders Najib’s Son Nizar to Pay RM13.1M Tax

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Unpaid taxes are from 2011.

Former prime minister Najib Razak’s second son, Mohd Nizar, has been ordered by the Shah Alam High Court to pay the Inland Revenue Board (IRB) RM13.16 million in back taxes, reports news portal The Edge Markets.

The unpaid taxes are from 2011.

Nizar, 42, took the case to court as he wanted the IRB order tossed out on the grounds that the time bar has lapsed.

NST

In civil suits, a claim has a time bar and must be filed within six to seven years of an incident.

The business portal, citing judicial commissioner Julie Lack Abdullah’s written judgment dated September 25, said the board’s claim against Nizar was not time-barred.

Explaining why the IRB’s claim against Nizar was not time-barred, Julie said the plea of limitation based on Section 91(1) and (3) of the Income TaxAct by a taxpayer cannot be entertained by the high court.

Only the special commissioners of Income tax have the power to do so.

She also dismissed Nizar’s claim stating that it was settled law that a person who owed taxes must first pay up before appealing to the special commissioners.

His brother, Mohamad Nazifuddin, similarly on July 6 was ordered to pay the IRB RM37.6 million in back taxes between 2011 and 2017.

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Najib on July 22 was also slapped with an order to pay RM1.69 billion in unpaid taxes.

However, the Shah Alam High Court on Aug 26 dismissed the IRB’s bid for summary judgment in the RM10.3 million tax suit against Nooryana Najwa, a daughter of Najib.

Najib, Nazifuddin, and Nizar have since appealed to the Court of Appeal, while the IRB has also appealed to the Court of Appeal over its failed summary judgment bid against Nooryana Najwa.

In Nizar’s case, he was accused of failure to pay RM764,228.07, RM1,624,985.74, RM1,592,904.17, RM530,066.52, RM1,215,490.78, RM1,908,897.91, and RM3,757,212.10, as additional tax assessment for the years 2011, 2012, 2013, 2014, 2015, 2016, and 2017.

He was slapped with an additional 10 percent on the total due to his purported failure to pay back the taxes within 30 days of being served the assessment notice at his last known address at No 38, Jalan 4M, Ampang Jaya, Ampang, Selangor, on March 22, 2019.

For alleged failure to pay up within 60 days, Nizar was hit with a further five percent hike, bringing the total tax due to RM13,159,821.94

The government was also seeking five percent annual interest on the total, from the date of judgment to the date of settlement, as well as costs and any other relief deemed fit by the court.