The Inland Revenue Board’s (LHDN) civil suit against former prime minister Najib Razak for RM1.69 billion in additional taxes is probably the biggest LHDN lawsuit in the history of Malaysia.
Tax and customs lawyer, S Saravana Kumar told Free Malaysia Today that although companies have been asked to pay billions in taxes before, this is probably LHDN’s biggest lawsuit against an individual.
“These arrears in tax against an individual are very likely the largest, although companies have also been asked to pay to the tune of billions.”S Saravana Kumar via Free Malaysia Today
On June 25, LHDN filed the suit asking Najib to pay RM1,692,872,924.83 in taxes allegedly owed between 2011 and 2017.
According to FMT, the summons were served on Najib as the sole defendent on July 4 after Najib failed to act on LHDN’s initial demand for additional tax assessments of RM1.47 billion in March.
Najib’s failure to act resulted in a 10% hike of RM147 million in April and then another compounded 5% hike of RM80 million in May.
The former premier failed to settle this renewed sum too which then resulted in another compounded 5% hike which has now totalled to RM1.67 billion
“If Najib fails to lodge an appeal against these assessments, the taxes become final and conclusive within 30 days.”S Saravana Kumar via Free Malaysia Today