Court of Appeal stays bankruptcy for Najib and Nazifuddin

The Malaysian Court of Appeal has granted a stay of bankruptcy proceedings for former Prime Minister Datuk Seri Najib Tun Razak and his son, Datuk Mohd Nazifuddin. The decision follows an appeal against a High Court ruling that had previously denied their request for a postponement.

The bankruptcy proceedings stem from tax assessments issued by the Inland Revenue Board (LHDN/HASiL) for the years 2011 to 2017. LHDN is seeking RM1.69 billion from Najib and RM37.6 million from Nazifuddin. The legal dispute centers on whether these tax assessments are accurate, a matter currently pending before the Special Commissioner of Income Tax (SCIT).

Defense counsel argued that proceeding with bankruptcy before the SCIT determines the merit of the tax assessments could lead to irreversible consequences. The Court of Appeal acknowledged that the tax assessments are not yet final in terms of merit and agreed to postpone the proceedings to balance the interests of the tax authorities with the rights of the taxpayers.