Najib ordered to pay IRB RM1.69 billion in unpaid taxes

This was after High Court Judge Datuk Ahmad Bache today allowed the IRB’s application for a summary judgment to be entered against Najib, 67.

A summary judgment is where a court decides a case through arguments without hearing the testimony of witnesses in a trial.

Justice Ahmad held that when a notice of tax assessment from the IRB, which requires payment to be made to the board, is served to taxpayers, they have to pay the amount sought, and this includes Najib as well, as everyone is equal before the law.

He also said Najib has to pay the amount claimed by the IRB as a “debt” to the government.

Citing a Federal Court judgment, the judge said the provision as expressed by the Federal Court - “pay first talk later” - although harsh, is an intentional provision of Legislature because of the high incidence of tax evasions in this country.

However, Najib can still appeal the amount to the Special Commissioner of Income Tax (SCIT), Justice Ahmad said.

On June 25, last year, the government through the IRB filed the suit against the Pekan MP, seeking him to pay RM1.69 billion in unpaid taxes with interest at five per cent a year from the date of judgment, as well as costs and other relief deemed fit by the court.

On July 6, this year, High Court judge Datuk Ahmad Zaidi Ibrahim granted IRB’s request for a summary judgment in its suit against Najib’s son, Datuk Mohd Nazifuddin, seeking him to pay RM37.6 million in unpaid taxes from 2011 to 2017.

“Hence, this triggers the effects or give rise to an absence of veritable defences that may be raised by the defendant. Thus, there exist no triable issues to warrant a full trial.

“Consequently, the court has no alternative but to enter a summary judgment against the defendant for the amount claimed by the plaintiff,” said the judge.

Justice Ahmad further said that the defendant’s lawyer argued that Section 106 usurps the judicial powers of the court and contravened Articles 121 of the Federal Constitution.

Section 106 states that "in any proceedings, under this section, the court shall not entertain any plea that the amount of tax sought to be recovered is excessive, incorrectly assessed, under appeal or incorrectly increased".

The judge, however, said the court was of the opinion that there was nothing to support the contention that Section 106 usurps the judicial powers of the court.

“Hence this court holds that submissions of the defendant in this regard is, with respect, misconceived and is therefore untenable,” he said.

Justice Ahmad also said the defendant’s purported defences were that the assessments were grossly incorrect and without basis for many reasons and the main reasons essentially are that a substantial amount of the income came from donations received from an Arab donor and some of the purported donations were even returned.

However, he said all the defences and pleas were the merits of the assessment that should be heard before the SCIT.

With this ruling, IRB’s suit against Najib to recover RM1.69 billion from him will not go for full trial.

A summary judgment is where a court decides a case through arguments without hearing the testimony of witnesses in a trial.

Meanwhile, another of Najib's lawyer, Muhammad Farhan Muhammad Shafee told reporters after the proceedings that his client will be filing for a stay of execution of today’s ruling.