KUALA LUMPUR — Aug. 13, 2019: Former prime minister Datuk Seri Najib Razak still has to pay income tax from 2011 to 2017 totalling RM1.69 billion even if he has filed an appeal to the Inland Revenue Board.
This is because Section 103 of the Income Tax Act states that all assessed tax shall be due and payable on the day the notice of assessment is served, whether or not the person appeals.
A supporting affidavit was filed on August 8 in relation to the writ of summons filed by the Malaysian government against Najib, seeking him to pay the RM1.69 billion.
IRB assistant director Hisyamuddin Mohd. Hassan said Subsection 106(1) of the act states that tax due and payable may be recovered by civil proceedings as a debt due to the government.
“I would also stress that Subsection 106(3) provides that in any proceedings, 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,” he said in the affidavit.
Hisyamuddin maintained that Najib had no defence with merit in the claim and that the IRB had the right to obtain the relief sought.
“I would like to stress that since the notice of (additional) assessment had been served properly to the defendant on March 25, it is proven that the defendant has been notified about the amount of his taxable income, the assessed tax, the place where the tax should be paid, the increased assessment and appeal against the assessment or increased assessment.
“As such, the tax liability has become due and payable,” adding that the IRB had also applied for a direct judgment in the suit against Najib.
The media obtained copies of the documents today.
On Aug. 8, Najib filed for a stay of court proceedings pending a reassessment appeal with the IRB.
On June 25, the government filed the suit against Najib seeking him to pay RM1,692,872,924.83, with interest at five per cent a year from the date of judgment, as well as cost and other relief deemed fit by the court. — Bernama