In his affidavit filed to strike out LHDN’s bankruptcy notice against him for failing to pay RM1.69 billion in tax arrears, Najib said the timing of the notice was highly questionable.
“Between January and February, cracks in the alliance between Umno and PN (Perikatan Nasional) began to surface and there was talk that Umno might depart from the PN government.
“Around this time, the bankruptcy notice was filed against me but it was not immediately served,” he said, arguing that the notice was deemed an abuse of process.
He added that during the Umno general assembly on March 28, the party passed a resolution on not cooperating with Bersatu, a PN member party, in the coming election.
“Two days after the Umno assembly, my lawyers were informed that LHDN would serve the bankruptcy notice on me,” he said.
Najib also contended in his affidavit that the bankruptcy notice was premature, as the RM1.69 billion tax assessment case was still pending before the Special Commissioners of Income Tax (SCIT) tribunal.
“The tribunal will fix a date to hear if the amount sought by LHDN is accurate.
“The amount demanded in the bankruptcy notice has not crystallised at this juncture, thus the filing of the notice is clearly premature and scurrilous in nature,” he added.
LHDN filed a bankruptcy notice against Najib for failing to pay RM1.69 billion in additional tax arrears for 2011 to 2017.
It added that Najib needed to pay the arrears along with 5% interest per year, amounting to RM45.9 million from the date of the summary judgment, and costs.
Last year, the High Court allowed the government to proceed with a summary judgment to recover the additional tax arrears from Najib.
LHDN also said the decision on the summary judgment had not been stayed since the court delivered its decision last year.
Under Article 48(1)(b) of the Federal Constitution, a person would be disqualified from becoming an MP for five years if he cannot discharge his bankruptcy status.
Najib’s legal team previously told reporters that they would file applications to set aside the bankruptcy notice.