IRB’s RM1.69b appeal in Najib bankruptcy case set for Feb 23; no appeal for Nazifuddin

The Federal Court has scheduled February 23 next year to review the Inland Revenue Board's (IRB) request to appeal the Court of Appeal's decision granting Prime Minister Datuk Seri Najib Razak a temporary stay on bankruptcy proceedings. According to lawyer Wee Yeong Kang, the hearing date was decided during an earlier case management session on November 4.

The IRB has not filed an appeal against the Court of Appeal's decision concerning the bankruptcy stay for Najib's son, Datuk Mohd Nazifuddin. In September, the Court of Appeal ruled in favor of Najib and Mohd Nazifuddin, granting them a temporary halt to bankruptcy proceedings pending the outcome of their appeals before the Special Commissioners of Income Tax (SCIT) regarding additional tax assessments issued by the IRB.

The three-member panel, led by Justice Datuk Dr Alwi Abdul Wahab, determined that the stay was appropriate due to the specific issues raised by the appellants, which require resolution by the SCIT. These issues include alleged computational errors in the taxable amount of approximately RM1.69 billion, concerns about double taxation, and the treatment of refunded donations and dividends for charitable and political use.

The IRB is seeking to collect RM1.69 billion from Najib and RM37.6 million from Mohd Nazifuddin, as the bankruptcy proceedings arose from the IRB's earlier summary judgment rulings against both for unpaid income tax arrears from 2011 to 2017. Both Najib and Mohd Nazifuddin had previously lost appeals before the Court of Appeal and Federal Court to overturn the summary judgments, resulting in bankruptcy notices being issued against them.