Summary judgment allowed in RM37.6m tax suit against Najib’s son
The Kuala Lumpur High Court has allowed the Inland Revenue Board’s (IRB) application for summary judgment in the RM37.6 million tax suit against Mohd Nazifuddin, the son of former prime minister Najib Abdul Razak.
Justice Ahmad Zaidi Ibrahim allowed the application during open-court proceedings this afternoon.
The Kuala Lumpur High Court has allowed the Inland Revenue Board’s (IRB) application for summary judgment in the RM37.6 million tax suit against Mohd Nazifuddin, the son of former prime minister Najib Abdul Razak.
Justice Ahmad Zaidi Ibrahim allowed the application during open-court proceedings this afternoon.
It was reported earlier that the court would deliver its verdict today on the IRB’s summary judgment application in the suit against Nazifuddin, who is a businessperson.
Under the law, summary judgment is where a party applies for the court to decide on a matter summarily without going for a full trial.
On Aug 8 last year, Malaysiakini reported that IRB filed a suit to recover RM37.6 million in alleged unpaid taxes from Nazifuddin for assessment years from 2011 to 2017.
In reading out the verdict this afternoon, Zaidi noted that the IRB’s summary judgment application would be allowed as the plaintiff succeeded in showing the tax claim was clear and obvious.
The judge noted this was particularly so as the tax suit sought to recover unpaid tax for assessment years from 2011 to 2017, including penalties among others.
Zaidi pointed out that the present case clearly showed that the notice of assessments for those years was served on Nazifuddin and that he had after that filed a tax-reassessment appeal with the IRB’s Special Commissioner of Income Tax (SCIT).
The judge said that despite Nazifuddin needing to pay the RM37.6 million to IRB, the defendant still has recourse via the tax reassessment appeal with SCIT.
Zaidi added that if the defendant was still not satisfied with the outcome of the appeal with SCIT, then he could still bring the matter to court later.
“I find that the defendant failed to show triable issues or there is a defence of merit. Based on the facts, this case is “jelas dan nyata” (clear and obvious), therefore the court allows the applicant’s (IRB) application for summary judgment,” Zaidi. The judge then fixed cost at RM10,000.
Senior revenue counsel Nor Hisham Ahmad and Al-Hummidallah Idrus appeared for the IRB.
When met after proceedings this afternoon, Nazifuddin’s counsel, Muhammad Farhan Muhammad Shafee confirmed that his client would have to pay the RM37.6 million to the IRB following the court order.
However, Farhan said that he would be consulting with his client on whether to apply for a stay against today’s decision at the Court of Appeal, pending appeal to the said court.
He said that if they file a stay application and if the Court of Appeal allows it, then Nazifuddin would not need to pay the RM37.6 million pending the appeal.
“Yes, the once the court order is issued, he (Nazifuddin) has to abide by the court order, unless he obtains a stay (at the Court of Appeal),” Farhan said.
The lawyer also added that Nazifuddin’s appeal before the SCIT is fixed for case management on Wednesday this week.
Nazifuddin was not present at court.
The IRB also has pending tax suits against Najib as well as his other children, Mohamad Nizar and Nooryana Najwa.
When father was PM IRB did not take action against son
Mohd Nazifuddin Najib, I am sure you are not disappointed with the decision. You no doubt will be able to see the silver lining in how the court ruled regarding the income tax civil suit. After all, what you lose on the roundabouts you can always make on the swings. Your father or rather his Learned Counsel Shafee Abdullah can use this turn of events as the grounds for yet another postponement of his own cases. The court may again view with sympathy any claim that Najib Razak may make that you are a delicate child who needs him during these stressful moments. Did I say “silver lining”? I meant “golden with diamonds embedded”.
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