Putrajaya goes to court to recover RM1.69 bil in taxes from Najib

Former prime minister Najib Razak.

KUALA LUMPUR: Putrajaya has filed a suit through the Inland Revenue Board (IRB) to recover RM1.69 billion in additional tax assessments between 2011 and 2017 from Najib Razak.

The lawsuit kicked in after the former prime minister failed to act on IRB’s initial inquiry of additional tax assessments of RM1.47 billion in March this year.

This resulted in a 10% hike of RM147 million in April and another compounded 5% hike of RM80 million in May.

The statement of claim, filed on June 25, followed the first additional assessment notice dated March 20.

“The plaintiff (Putrajaya) sent the additional assessment notice by registered post to the defendant (Najib) on March 25 to his last known address.

“However, the notice was never returned to the plaintiff,” said the statement claim signed of by senior federal counsel Mazlan Alias.

The 10% increase is stated under Section 103 of the Income Tax Act 1967 after Najib refused to pay the initial RM1.47 billion within 30 days from the date the initial notice was delivered.

Najib also failed to settle the renewed sum within 60 days under the same provision, which resulted in the compounded 5% hike.

Putrajaya said it is entitled to the RM1.69 billion claim, together with 5% interest per year from the day of judgement until the amount is paid, costs and any relief deemed fit by the court.

Meanwhile, a case management will be held before deputy registrar Erry Shahriman Nor Aripin on July 8.

Yesterday, Najib, in a Facebook post, claimed money accepted as donations, including from overseas, as well as political funds are usually not taxable.

He said the IRB tax was imposed on the funds he had received in his bank account as donations and contributions from overseas.

He said the largest amount in tax was in 2013 when his bank account received RM2.6 billion. A bank officer had told a court hearing in the SRC case that these funds were returned to the sender four months later but he was still being taxed for that, he said.

He said these funds included donations from Saudi Arabia’s finance ministry and an Arab prince. These were confirmed by bank officers during the SRC case, he added.

Najib also highlighted the irony that the government had charged him in court for accepting illegal money but the IRB considered it legal income that needed to be taxed.

He said he had been paying his taxes regularly and had never run away from paying them.

Najid said he would have to hire more lawyers and spend years in court fighting the IRB.

He said the people will have to decide whether this was a case of the PH government misusing its powers for political reasons and whether it was being cruel in his case.