Najib, son’s bankruptcy proceedings over RM1.7bil tax arrears suspended
The Malaysian Court of Appeal has suspended bankruptcy proceedings against former Prime Minister Najib Razak and his son regarding RM1.7 billion in tax arrears. The court ruled that the High Court failed to properly consider the merits of their ongoing challenge before the Special Commissioners of Income Tax.
Why it matters
This ruling is a significant development in a high-profile legal case involving a former national leader, highlighting the intersection of tax law and political litigation.
In July 2020, a summary judgment was entered against Najib Razak for tax arrears of over RM1.69 billion, while a RM37.6 million sum was ordered against his son, Nazifuddin.
PUTRAJAYA: The Court of Appeal has allowed an application by Najib Razak and his son, Nazifuddin, to suspend the bankruptcy proceedings against them for failing to settle RM1.7 billion in tax arrears.
Justice Alwi Abdul Wahab said there were special circumstances justifying the stay of proceedings while they challenged the tax quantum before the special commissioners of income tax (SCIT).
He found that the High Court had not properly exercised its discretion in refusing the father and son's bid to suspend the bankruptcy proceedings.
"The appeal at SCIT discloses serious, substantial, and in part, arguable issues.
"The High Court brushed aside these issues and failed to address or weigh them in deciding whether sufficient grounds existed for a stay," Alwi said.
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