Truth will prevail, says Najib in explaining why court allowed taxman’s summary judgment

Truth will prevail, says Najib in explaining why court allowed taxman’s summary judgment

Former prime minister says courts have no power to dispute tax claimed by LHDN but that the ‘truth will prevail’ when the matter goes to the Special Commissioners of Income Tax.

Former prime minister Najib Razak claims the country’s tax laws are misused for political expediency.
PETALING JAYA:
Former prime minister Najib Razak said “the truth will prevail” in the issue of RM1.69 billion in additional tax arrears being claimed by the Inland Revenue Board (LHDN).

In a Facebook post, Najib said the KL High Court’s decision today to allow LHDN to proceed with a summary judgment to recover the money from him was in line with the law as the courts had no power to dispute, change or stop LHDN from pursuing tax claims, regardless of whether it was right to claim the tax or not.

Najib will now have to appeal his case at the Special Commissioners of Income Tax.

“Actually, I was not ordered by the judge to pay the tax but the judge gave a summary judgment to LHDN to continue with their claims against me.”

Under Malaysia’s tax laws, Najib said LHDN had the power to impose additional taxes and penalties on any individual and the courts could not intervene in these claims.

“This means if LHDN claims taxes of RM3.76 trillion, the court has to instruct the defendant to pay RM3.76 trillion. Pay first, after paying, an appeal can be made to LHDN’s appeals panel to get back the unjustified payments.”

Najib said this was why the previous Pakatan Harapan administration could impose additional claims and taxes amounting to RM1.69 billion for the RM2.6 billion he received even though the money was returned after four months.

Another RM632 million, which came from the Saudi Arabian finance ministry, was a foreign contribution, which should not be taxed, he said.

But, Najib alleged, the country’s tax laws were misused for political expediency.

“The truth will prevail when we face the Special Commissioners of Income Tax”.

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