Najib slapped with RM1.69 billion tax bill
(The Edge) – The Government, through the Inland Revenue Board (IRB), is seeking RM1.69 billion in additional tax assessments from former prime minister Datuk Seri Najib Razak in 2011-2017, court documents sighted by theedgemarkets.com showed.
This was after Najib failed to respond to an initial inquiry by the IRB of additional tax assessments of RM1.47 billion in March this year, resulting in a 10% hike of RM147 million in April and another compounded 5% hike of RM80 million in May (see table).
This confirms a news report by The Edge Financial Daily on April 1, 2019 that the IRB has slapped Najib with an extra tax bill for the assessment years of 2011 to 2017 to the tune of about RM1.5 billion, quoting sources.
The Writ of Summons dated June 25, 2019 followed the first additional assessment notice that was dated March 20, 2019.
“The additional assessment notice was sent via registered postage to the defendant on March 25, 2019 to his last known address by the plaintiff [government] at the time.
“The additional assessment notice was never returned to the plaintiff,” the writ stated.
The first 10% increase came in line with Section 103 of the Income Tax Act 1967 after Najib failed to pay the initial RM1.47 billion within 30 days from the date the initial assessment notice was delivered.
Subsequently, Najib failed to settle the renewed sum within 60 days under the same act, which resulted in the compounded 5% hike.
“The plaintiff has the right to recoup the income tax that is still owed, as with the increases imposed on the defendant as a tax which is due to be paid,” said the writ.
The RM1.69 billion claim comes together with 5% interest per annum from the day of judgement until the sum is satisfied, costs, and any relief deemed appropriate by the court.