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KUALA LUMPUR, April 6 — A bankruptcy notice has been issued to former prime minister Datuk Seri Najib Razak by the Inland Revenue Board (IRB) who visited his home yesterday.
News portal Malaysiakini cited a source close to the convicted politician saying the IRB notice is over RM1.7 billion in unpaid taxes.
“The case has been set for case management at the Kuala Lumpur court this May 5,” the unnamed source was quoted saying.
The bankruptcy notice sighted by Malay Mail said Najib has to pay RM1.69 billion with interest at five per cent for a year between July 22, 2020 and February 4, 2021, amounting to RM45.9 million from the date of the summary judgment.
Najib is also expected to pay court fees amounting to RM15,000. All together, the IRB said Najib has to pay RM17.4 billion.
The IRB said that if Najib does not comply with the requests stated in the notice, bankruptcy proceedings can be taken against him.
On June 25 last year, the government through the IRB, filed a lawsuit against the Pekan MP to claim payment of RM1.69 billion in unpaid taxes from 2011 to 2017.
Interest was set at five per cent a year from the date of judgment, as well as costs and other relief deemed fit by the court.
Last July 22, the High Court ruled in favour of the IRB.
Judge Datuk Ahmad Bache said the IRB is allowed to collect tax arrears amounting to RM1.69 billion from the former prime minister.
He said that since the notice of assessment had been properly served to Najib pursuant to Section 103(2) of the Income Tax Act 1967 (ITA), the tax payable under those additional assessments becomes due and payable to the IRB.
The judge said under Section 106 of the ITA, the court found that the additional income tax was hereby due and recoverable as debt due to the government for an amount RM1,692,872,924.83 as evident in the certificate of indebtedness issued on August 5, 2019.