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High Court sets Nov 8 to hear IRB's summary judgment application and Najib's stay application on RM1.69b tax

KUALA LUMPUR (Sept 7): The High Court fixed Nov 8 to hear the application filed by the Inland Revenue Board (IRB) to obtain a summary judgment against former Prime Minister Datuk Seri Najib Razak regarding the alleged RM1.69 billion taxes that he owes.

The date was set for the hearing of Najib’s application to stay the proceedings pending the outcome of the appeal on the tax assessment as well.

A summary judgment is a decision made on the basis of statements and evidence presented in legal pleadings and documents filed, without a trial or calling of witnesses.

Lawyer Farhan Shafee, who appeared on behalf of Najib, told reporters that the High Court Judge Datuk Ahmad Bache fixed the date in the chambers yesterday afternoon after meeting both parties.

Both parties had been ordered to file their respective written submission by Nov 1, he added.

On Aug 8, Najib filed the stay application on the proceedings, pending a tax reassessment appeal filed with the IRB.

The IRB on the same date filed an application for a summary judgement on the matter.

It also filed a supporting affidavit asserting that Najib still has to pay the RM1.69 billion sum regardless of the reassessment appeal.

This, the affidavit stated, is in accordance with Section 103 of the Income Tax Act 1967, which underlines that all assessed tax shall be due on the day the notice of assessment is served.

The Government, through the IRB, filed the claim against Najib after he failed to respond to the IRB’s initial inquiry regarding additional tax assessments of RM1.47 billion in March this year, resulting in the total tax bill rising 10% or RM147 million in April, followed by a compounded 5% or RM80 million increase in May. Najib was named the sole defendant in the writ of summons filed on June 25.

The Edge Financial Daily first broke the news on April 1 that the IRB had slapped Najib with an extra tax bill for the assessment years of 2011 to 2017 amounting to about RM1.5 billion.  

On July 5, the daily wrote that the additional tax bill had risen to RM1.69 billion, citing court documents sighted.

Federal counsels attached to IRB, Norhisham Ahmad, Mazlan Alias and Al-Hummidallah Idrus appeared for IRB today.

Najib was also represented by lawyer Wee Yeong Kang.

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