Why did Shafee say the September SCIT appeal could be meaningless?

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Shafee said Najib’s September SCIT appeal could be meaningless if the bankruptcy case is not stayed
Tan Sri Shafee Abdullah argued that if the Inland Revenue Board (LHDN) is allowed to proceed with the bankruptcy action, Najib Razak’s appeal before the Special Commissioners of Income Tax (SCIT) in September would be rendered “meaningless.” He said a bankruptcy declaration would bar Najib from various activities and strip him of control over his assets, placing them under the authority of the director-general of insolvency.
A bankruptcy declaration would remove control over Najib’s assets
Shafee told the Court of Appeal that continuing the bankruptcy action would have immediate practical effects. He said a bankruptcy declaration would not only restrict Najib’s activities, but also transfer control of his assets to the director-general of insolvency.
The court challenge is tied to the same tax dispute
The dispute concerns an additional tax assessment of RM1.69 billion covering the 2011 to 2017 period. Najib’s position is that the assessment is linked to an alleged RM8 billion donation, which he maintains was used for political and welfare activities, while the LHDN is seeking recovery through bankruptcy proceedings.
Shafee framed the situation as an uneven fight
Shafee argued that proceeding with bankruptcy would be “akin to entering the boxing ring with both hands tied.” In his view, the SCIT appeal in September would not provide a workable outcome if bankruptcy consequences are already in effect.
The LHDN opposed a stay using the “pay first, talk later” principle
LHDN’s senior revenue counsel Norhisham Ahmad countered that there were “no special circumstances” to justify a stay. He relied on a Federal Court ruling from October 2023 upholding the “pay first, talk later” principle, which requires tax assessments to be settled even if appeals are pending.

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Why did Shafee say the September SCIT appeal could be meaningless?

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