Court of Appeal halts bankruptcy threat against Najiib and son over RM1.73 billion tax bill
FORMER prime minister Datuk Seri Najib Razak and his son, Datuk Mohd Nazifuddin, will not face bankruptcy proceedings for now after the Court of Appeal unanimously ordered the proceedings to be stayed pending the outcome of their tax appeals. A three...
The Court of Appeal has halted bankruptcy proceedings against former Prime Minister Datuk Seri Najib Razak and his son, Datuk Mohd Nazifuddin, pending the outcome of their tax appeals. The three-member panel ruled that the tax assessments totalling RM1.73 billion are substantial enough to warrant the stay of the proceedings. The decision overturns the High Court's rejection of their applications for a stay in November 2025.
The panel also set aside the decision to dismiss their tax appeal challenges, stating that the bankruptcy decision has irreversible consequences beyond merely recovering the paid funds. The government will not be prejudiced by the decision, and the court identified a new issue regarding the overlap of funds subjected to additional tax assessments and criminal charges against Najib.
The case proceeds to separate proceedings before the Special Commissioners of Income Tax, with appeals scheduled for September and October 2026.
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