Malaysia’s former prime minister Najib Razak and his son, Mohd Nazifuddin Najib, have been ordered to pay over US$407 million in taxes after the High Court dismissed their appeal to delay bankruptcy proceedings. The Inland Revenue Board (IRB) initiated the bankruptcy process after the duo failed to pay significant tax arrears.
Court Dismisses Appeal to Stay Bankruptcy
The Malaysian High Court ruled against Najib and Nazifuddin’s request for a stay on bankruptcy proceedings. Judicial Commissioner Suhendran Sockanathan rejected the appeal, stating there was no valid reason to grant a delay. He explained that tax assessments must be determined by the Special Commissioners of Income Tax, not by the court, and emphasized that the court’s role was solely to facilitate tax collection.
The court also mandated that both Najib and his son each pay 7,000 ringgit in costs associated with the legal process. The ruling marks a significant moment in the ongoing legal challenges faced by the former prime minister and his family.
Tax Arrears and Court Rulings
Najib, who faces arrears of 1.69 billion ringgit (approximately US$407 million), and Nazifuddin, who owes 37.6 million ringgit, had previously lost similar appeals in 2020, when two separate High Courts allowed the IRB’s applications to recover the outstanding amounts. The taxes were owed for the period between 2011 and 2017, relating to Najib’s earnings and business dealings.
The Malaysian government filed a bankruptcy notice against the father and son in February 2021. The Federal Court had already ruled on October 16, 2023, that they must pay the arrears, dismissing their attempt to overturn the High Court’s decision.
The Aftermath of the 1MDB Scandal
This case is further complicated by the broader fallout from the 1MDB scandal, in which Najib was convicted for embezzling billions of dollars. His legal troubles continue to overshadow his political legacy, with the latest ruling adding another layer of financial and legal challenges. The bankruptcy proceedings signal a major step in the enforcement of tax obligations in Malaysia, particularly against high-profile figures linked to corruption.
Ongoing Legal Battles
Despite the court’s ruling, Najib and his son are likely to continue their legal battles, potentially appealing to higher courts or pursuing negotiations with the IRB to settle the debts. However, the outcome of this case could set a precedent for similar cases involving high-ranking officials and politicians in Malaysia, highlighting the government’s commitment to holding individuals accountable for tax evasion.
