PETALING JAYA: The Inland Revenue Board (LHDN) should stop its suit demanding more than RM1.7bil in tax arrears from former premier Datuk Seri Najib Razak, says Umno supreme council member Datuk Mohd Puad Zarkashi.
Puad said that after a witness told the High Court on Thursday (Oct 12) that Najib returned more than RM2bil to Tanore Finance Corporation in Singapore, it was clear that the former premier did not use any of the funds for personal purposes.
"Putrajaya should cancel the RM1.7bil LHDN suit against Najib.
"What is the logic behind LHDN to impose taxes on the income and expenditure of Najib over the RM2.08bil donation of which RM2.034bil was returned five months ago?" said Puad in a statement on Sunday (Oct 15).
According to Puad, the sum returned by Najib varied from the original donated figure due to bank transaction fees.
"The crux is that Najib did not use (the funds) for personal expenses," added Puad.
Puad also said Tun Dr Mahathir Mohamad, during his tenure as premier, had politicised the LHDN to victimise Najib.
"In fact, LHDN initially refused to explain how the RM1.7bil in tax arrears came about," said Puad.
"That is why LHDN should cancel its suit because Dr Mahathir had abused LHDN," added Puad.
Last Thursday (Oct 12), Assistant Director of the Money Laundering Criminal Investigation Division ACP Foo Wei Min said his investigations revealed RM2,034,350,000 was returned to Tanore Finance Corporation in Singapore through five transactions between Aug 2 and 23 in 2013.
In 2019, Putrajaya filed a suit against Najib, seeking the former premier to pay nearly RM1.7bil, interest at 5% a year from the date of judgment, as well as costs and other relief deemed fit by the court.
In June, it was reported that Najib and his son Datuk Mohd Nazifuddin were appealing against the High Court’s decision to allow LHDN's application to enter summary judgements over the income tax arrears.
A summary judgment is obtained when the court decides on a case through written submissions without a full trial and without calling witnesses.
Both Najib and Nazifuddin lost their appeals in the Court of Appeal in September 2021 to set aside the summary judgments.
On May 10 last year, the Federal Court granted them leave to pursue their appeals to the Federal Court.
