KUALA LUMPUR – In a major legal reprieve, former Prime Minister Datuk Seri Najib Razak and his son, Datuk Mohd Nazifuddin, have successfully frozen bankruptcy proceedings initiated against them over unpaid taxes totaling over RM1.7 billion.
A three-man Court of Appeal bench—comprising Justices Datuk Dr Alwi Abdul Wahab, Datuk Dr Shahnaz Sulaiman, and Datuk Ong Chee Kwan—unanimously overturned a November 17 High Court decision that previously refused to halt the action.
Delivering the judgment, Justice Alwi declared that a stay was fully justified given that the duo had raised specific, substantive issues that must first be determined by the Special Commissioners of Income Tax (SCIT).
The decision provides crucial breathing room for the father and son as they challenge the underlying tax assessments issued by the Inland Revenue Board (IRB).
The high-stakes saga traces back to summary judgments obtained by the IRB against the pair over unpaid tax arrears spanning the 2011 to 2017 assessment years:
Najib Razak: Facing a staggering RM1.69 billion tax bill from the IRB.
Mohd Nazifuddin: Pursued for RM37.6 million in alleged tax arrears.
Under Malaysian tax law, the IRB had previously utilized “pay first, dispute later” rules to secure summary judgments, subsequently using those rulings to initiate bankruptcy notices against both men. Bankruptcy would impose severe financial restrictions and civil disabilities on the former premier and his son.
By securing this appellate stay, Najib and Nazifuddin effectively halt the bankruptcy threat until the SCIT formally rules on whether the multi-billion-ringgit tax assessments were validly issued in the first place. – September 4, 2026