Najib to file stay order against bankruptcy notice

- Advertisement - [resads_adspot id="2"]

Datuk Seri Najib Razak will be filing a stay order against the bankruptcy notice served on him following his failure to pay RM1.69 billion in additional income tax arrears being demanded by the Inland Revenue Board (IRB).

Mohd Fadli Hamzah/NST

His lawyer, Tan Sri Muhammad Shafee Abdullah, said he will be filing the necessary documents soon seeking not only a stay of the bankruptcy notice but also on the amount being sought by the taxman.

“I have been instructed by Najib to file all these applications as soon as possible,” he said before going on to describe the bankruptcy action against the former prime minister as an orchestrated attempt to make it difficult for his client.

Shafee said it could be seen from the timing of the notice, that events that unfolded during the recently concluded Umno general assembly had something to do with it.

He said it was all sparked by Umno’s decision not to work with Perikatan Nasional (PN) anymore.

“We were informed the notice would be served on us about one week ago. It happened two days after the Umno general assembly when the party announced it wanted to break away from PN.

“This is clearly an act of intimidation…an extortion and abuse of power,” he told reporters here.

It was reported that the IRB had filed a notice of bankruptcy against Najib at the Kuala Lumpur High Court.

According to the notice, the former prime minister has to pay RM1.69 billion with interest of five percent a year between July 22, 2020 and Feb 4, 2021, amounting to RM45.9 million from the date of the order of the summary judgement as well as costs of RM15, 000.

This brings the accumulated sum being demanded by the IRB to RM1.73 billion.

IRB had also in the notice said if Najib does not comply with the requests stated in the notice, a bankruptcy proceeding could be instituted against him.

On July 22, last year, the High Court allowed the IRB’s application for a summary judgement to be entered against Najib in its suit to recover the RM1.69 billion in taxes from the latter for the period between 2011 and 2017.

Subsequently, he was ordered by the court to pay the amount.

Najib had on March 31 applied for a stay of the court’s order for him to settle the RM1.69 billion pending his appeal at the Court of Appeal against the summary judgement order.

The notice of appeal was filed on July 27, last year.

The matter has been fixed for hearing on June 11. – NST

Earlier reports:

Apr 7, Najib claims bankruptcy notice an attempt to disqualify him as MP

Apr 6, Najib served with bankruptcy notice over RM1.7b tax bill