KUALA LUMPUR: The High Court here today allowed the Inland Revenue Board (LHDN) to seek a summary judgment to recover more than RM37.6 million in tax arrears from Najib’s son, Mohd Nazifuddin, over a period of seven years.
Judge Ahmad Zaidi Ibrahim said LHDN can proceed with its case against the businessman after ruling that the defence had failed to raise a just cause against the application.
Summary judgment is a proceeding where the court decides on a case, through written submissions, without a full trial and calling witnesses.
“The defence had raised the issue that the notice of tax assessment was not properly served to him. However, the court found that service was done properly,” Zaidi said.
He also said Nazifuddin was not precluded from challenging how the taxman made the assessment against him.
“There is an avenue for him to challenge the assessment before the Special Commissioner of Income Tax,” he said, adding that the defence can appeal against the tribunal’s decision in the High Court if it ruled against Nazifuddin.
LHDN was represented by senior revenue counsel Nor Hisham Ahmad and Al-Hummidallah Idrus, while Muhammad Farhan Shafee appeared for Nazifuddin.
Farhan said they would seek Nazifuddin’s instruction on whether to appeal against today’s court ruling.
“We also have a case management before the tribunal this week for his challenge on the tax assessment. But as of today, he (Nazifuddin) has to pay RM37.6 million in tax arrears,” he said.
LHDN claimed in its lawsuit against Nazifuddin that he had not filed his tax returns from 2011 to 2017.
It said the government had the right to recover the amount owed as well as the 10% interest on the unpaid sum.
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