Datuk Seri Najib Razak’s attempt to stay bankruptcy proceedings was postponed after the High Court raised concerns about disorganised and incomplete submissions from his legal team.
Judicial Commissioner Suhendran Sockanathan @ Saheran Abdullah instructed Najib’s lawyer, Muhammad Farhan Shafee, to refile a consolidated and structured set of submissions. The judge noted that key legal arguments were either missing or scattered across various documents, making them difficult to follow.
Farhan had argued that the Inland Revenue Board’s (IRB) RM1.69 billion tax claim against Najib was tied to funds allegedly linked to 1Malaysia Development Bhd (1MDB), which are still under investigation in both civil and criminal proceedings. He contended that proceeds of alleged criminal activity should not be taxed under Section 4 of the Income Tax Act 1967 and that provisions of the Anti-Money Laundering Act were relevant.
He also raised concerns of potential double recovery, claiming the government was attempting to penalise Najib under both criminal and tax laws based on the same facts. However, the court pointed out that these core arguments were not clearly presented in the written submissions.
“You are all over the place,” Saheran remarked, stressing that he did not want to deal with fragmented arguments. “Update the submissions and get it to us… I don’t want this sitting on my docket for too long.”
Farhan agreed to revise the documents and assured the court they would be ready within a week, but Saheran granted two weeks to ensure the filing was done properly. The next hearing has been scheduled for September 8.
Senior federal counsel Norhisham Ahmad, representing the IRB, supported the need for clearer and more complete submissions, saying several arguments raised in court had not been previously included in Najib’s filings.
Najib is currently appealing against two bankruptcy notices tied to additional tax assessments totaling RM1.46 billion, which have now grown to RM1.69 billion due to penalties and interest. He maintains that the assessments are flawed and should be stayed while related legal matters are still pending in other courts.
The IRB first filed the tax suit against Najib in June 2019, seeking full payment of the outstanding taxes, interest, legal costs, and other relief as deemed appropriate by the court.
