What additional tax assessment of RM1.69 billion is tied to?

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Additional Tax Assessment Linked to Alleged RM8 Billion Donation for Political and Welfare Activities

An additional tax assessment of RM1.69 billion levied against Datuk Seri Najib Razak is directly linked to an alleged RM8 billion donation. Najib contends that these funds were allocated for political and welfare initiatives. This assessment specifically covers the tax period spanning from 2011 to 2017.
Basis of the Tax Assessment

The RM1.69 billion tax assessment stems from the Inland Revenue Board's (LHDN) examination of an alleged RM8 billion donation. Najib's defence argues that this donation was intended for and utilized in political and welfare activities. The LHDN's assessment covers the years between 2011 and 2017, indicating a comprehensive review of his financial dealings during that timeframe.
Legal Proceedings and Stay Application

The dispute over this tax assessment has led to significant legal challenges. Najib's lawyer, Tan Sri Shafee Abdullah, has argued before the Court of Appeal that proceeding with the LHDN's case would render Najib's appeal before the Special Commissioners of Income Tax (SCIT) in September "meaningless." He further warned that a bankruptcy declaration would severely restrict Najib's activities and place his assets under the control of the director-general of insolvency.
LHDN's Stance and Federal Court Ruling

The LHDN, represented by senior revenue counsel Norhisham Ahmad, has countered that no "special circumstances" justify a stay of proceedings. Their argument relies on a Federal Court ruling from October 2023, which upheld the "pay first, talk later" principle. This principle mandates that tax assessments must be settled, irrespective of any ongoing appeals.
High Court Dismissal and Ongoing Challenges

This legal battle follows a High Court ruling on November 17 last year, where applications by Najib and his son, Nazifuddin, to stay bankruptcy proceedings for unpaid tax arrears were dismissed. The court affirmed that pending appeals do not exempt taxpayers from recovery actions. Najib is currently challenging two bankruptcy notices, asserting that the tax assessments, which have increased from RM1.46 billion to RM1.69 billion due to penalties and interest, are fundamentally flawed and should not be enforced while related proceedings are active.

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What additional tax assessment of RM1.69 billion is tied to?

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