KUALA LUMPUR: The High Court here today dismissed an application by Datuk Seri Najib Tun Razak and his son, Datuk Mohd Nazifuddin to stay the bankruptcy proceedings against them for failing to settle RM1.69 billion and RM37.6 million tax arrears, respectively.

The matter was confirmed by their lawyer, Muhammad Farhan Muhammad Shafee after the proceedings held in chambers today.

"Today's decision was to stay the bankruptcy proceedings to allow the Special Commissioners of Income Tax (SCIT) hearing to go on first. However, deputy registrar Kamarul Aris Kamalluddin did not allow our application.

"We will be appealing immediately," he said, adding that there has been no declaration of bankruptcy at this point, as there has only been a notice that has been issued.

On Oct 16, 2023, the Federal Court ruled that the duo must settle the unpaid taxes after dismissing their appeal to quash the High Court's decision against them.

Najib and his son were appealing against two High Court decisions to allow the Inland Revenue Board's (IRB) application to enter summary judgements over the income tax arrears case.

A summary judgement is obtained when the court decides on a case through written submissions without a full trial and calling witnesses.

Two separate High Courts had allowed the IRB's applications to enter summary judgements to recover tax arrears from the duo for the period between 2011 and 2017.

Both Najib and Mohd Nazifuddin lost their appeals in the Court of Appeal in September 2021 to set aside the summary judgements.

On May 10, 2022, the Federal Court granted them leave to pursue their appeals with the Federal Court.

-- BERNAMA