KUALA LUMPUR — July 22, 2020: A High Court has allowed the Inland Revenue Board (LHDN) to proceed with a summary judgment to recover over RM1.69 billion additional tax arrears from former prime minister Datuk Seri Najib Razak.
In arriving at the decision, Justice Ahmad Bache pointed out that the Income Tax Act doesn’t give power to a court to entertain any pleas from individuals who want to dispute LHDN’s assessment.
“Once LHDN has served the notice of assessment to the defendant, the court has no power to entertain the plea on the sum the government is seeking to recover on grounds that it is excessive or was wrongly accessed.
“He raised the defence that the sum he received was in a form of donation and the donation was not taxable under the law.
“However, these facts should be heard by the Special Commissioners of Income Tax. The court is not the appropriate forum to decide,” he said, adding that Najib has also filed an appeal against LHDN’s notice of assessment to the tribunal.
In an immediate response, Najib maintained that the truth will prevail.
In a Facebook post, Najib described the court’s decision as being in line with the law.
“Actually, I was not ordered by the judge to pay the tax but the judge gave a summary judgment to LHDN to continue with their claims against me.”
LHDN filed a uit against Najib last year, claiming the tax arrears.