PUTRAJAYA: The Court of Appeal today dismissed the appeal of former Prime Minister Datuk Seri Najib Tun Razak and his son Datuk Mohd Nazifuddin against High Court's decision for them to pay additional income tax arrears amounting to RM1.69 billion and RM37.6 million respectively to the Inland Revenue Board (LHDN).
Judge Datuk Abdul Karim Abdul Jalil, who led a three-judge panel in a unanimous decision, said the court found no merit in the appeal filed by the two appellants and no error in the judgment by the two High Court judges.
"As such, the appeals of the two appellants are dismissed with cost of RM10,000 each," Judge Abdul Karim said at the virtual proceedings today. The other two judges were Datuk Vazeer Alam Mydin Meera and Datuk Supang Lian.
Najib and Mohd Nazifuddin, however, need not to pay the additional income tax arrears yet as the court had allowed their application for a temporary stay of the decision.
Both Najib and Nazifuddin are appealing against the decisions of two separate High Courts which allowed the LHDN's applications to enter summary judgment to recover tax arrears of RM1.69 billion from Najib and RM37.6 million from Nazifuddin, respectively.
Judge Abdul Karim in his judgement said the court found that Section 106 (3) of the Income Tax Act 1967 did not contravene Article 121 of the Federal Constitution and that the court has judicial power to hear and decide over disputes under Section 106 even in the circumstances the matters were not allowed to be raised for court consideration.
Section 106 (3) states that in any proceeding 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.
Lawyer Tan Sri Muhammad Shafee Abdullah applied for a temporary stay of execution of today's decision as the defence would file an application for leave to appeal in the Federal Court.
Judge Abdul Karim allowed the temporary stay, saying that both appellants had to file the notice of appeal no later than next Tuesday.
On July 22, last year, High Court judge Datuk Ahmad Bache 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.
A summary judgment is when the court decides a particular case summarily, without calling witnesses to testify in a trial.
As for Nazifuddin, High Court judge Ahmad Zaidi Ibrahim, had on July 6 last year, ordered him to pay RM37.6 million in unpaid taxes to LHDN after allowing the board's application to enter a summary judgment against him in its tax arrears suit seeking to recover the unpaid amount from him (Nazifuddin) between 2011 and 2017.
On Feb 4 this year, the board issued a bankruptcy notice against Najib for his failure to pay the amount as the summary judgment was not stayed.
Mohd Nazifuddin was also served with a bankruptcy notice on April 30 this year over failure to pay the amount as ordered by the High Court.
-- BERNAMA
Bernama
Thu Sep 09 2021
Najib and Mohd Nazifuddin, however, need not pay the additional income tax arrears yet as the court had allowed their application for a temporary stay of the decision. BERNAMA photo
Millions in Cuba still without power as major outage persists
Millions of Cubans remain without electricity because of a prolonged outage at the main power plants on the island, Anadolu Agency reported.
Surge in Gaza violence increases famine risk, monitor says
About 1.84 million people across the besieged Palestinian enclave are living through high levels of acute food insecurity.
Israel pounds Beirut and Gaza after rockets hit Israel's north
A drone was launched at Prime Minister Benjamin Netanyahu's holiday home.
Elon Musk promises to award $1 mil each day to a signer of his petition
He awarded a $1 million check to an attendee of his event in Pennsylvania aimed at rallying supporters behind Donald Trump.
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Father of Malaysian Islamic banking, Abdul Halim Ismail passes away
His dedication and pioneering spirit played an important role in shaping the journey of Bank Islam as well as leaving a lasting impact on the development of Malaysia's Islamic finance industry.
Zayn Malik postpones US tour dates after One Direction bandmate Liam Payne's death
Payne, 31, died on Wednesday after falling from a third-floor hotel room balcony in Buenos Aires, shocking fans of the boy band.
Why voters in a handful of swing states will decide the US presidential election
The contest will almost certainly be decided by just tens of thousands of voters a tiny fraction of the populace in a handful of states.
INSIGHT - Sudan's war risks 'lost generation' of children
A devastating crisis is unfolding in Sudan, where the most vulnerable members of society children are bearing the brunt of the violence.
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.