Lead counsel Muhammad Shafee Abdullah told reporters that the legal team was only informed about the service of bankruptcy notice last week.
“Coincidentally, we were informed about this two days after the Umno general assembly, where the party passed a resolution to break away from PPBM.
“This is a clear abuse of process and intimidation. If it is not an authority doing it, it will be a criminal act.
“It is quite clear that there are certain people who are trying to disqualify him from any election and position in the party,” he said in response to the notice that was filed on Feb 4.
The Inland Revenue Board (LHDN) filed the bankruptcy notice against Najib for failing to pay RM1.69 billion in additional tax arrears for 2011 to 2017.
The taxman said Najib needed to pay the arrears along with interest of 5% for each year, amounting to RM45.9 million from the date of the summary judgment, and cost.
Shafee added that Najib’s legal team will file applications to set aside the bankruptcy notice, and stay the bankruptcy proceedings that LHDN seeks to initiate.
“We are also asking for a stay against the RM1.69 billion summary judgment order,” he said, adding that the High Court will hear the bid to halt the summary judgment on June 11.
On July 22 last year, the High Court allowed the government to proceed with a summary judgment to recover the additional tax arrears from Najib.
LHDN contended that the decision on the summary judgment had not been stayed since the court delivered its decision last year.
The taxman filed a lawsuit against Najib in 2019, claiming the tax arrears.
High Court Judge Ahmad Bache, in granting the summary judgment, ruled that since the notice of assessment had been properly served on Najib pursuant to Section 103(2) of the Income Tax Act 1967, the tax payable under those additional assessments becomes due and payable to LHDN.
Besides Najib, his sons Mohd Nazifuddin and Mohd Nizar were also slapped with tax bills from LHDN.
They too are appealing against the summary judgment that LHDN obtained.