M'sia High Court dismisses Najib & son's bid to stay bankruptcy case over US$409M in unpaid taxes

KUALA LUMPUR, MALAYSIA: On 17 November 2025, the High Court of Malaysia dismissed appeals by former Prime Minister Najib Razak and his son Nazifuddin seeking to stay bankruptcy proceedings.

The proceedings stem from unpaid tax arrears assessed at RM1.69 billion, equivalent to about US$407 million, for Najib, and RM37.6 million, roughly US$9.05 million, for Nazifuddin.

According to court remarks delivered by Judicial Commissioner Suhendran Sockanathan@Saheran Abdullah, the court found no additional harm that would warrant granting a stay.

He stated that both appeals were dismissed with costs of RM7,000 each.

The ruling upheld an earlier decision by deputy registrar Kamarul Aris Kamalluddin, who had dismissed the applications seeking to halt the bankruptcy actions.

The judge rejected the argument that the proceedings should be paused pending ongoing appeals at the Inland Revenue Board.

He noted that an appeal to LHDN does not suspend the obligation to pay tax or prevent the commencement of recovery processes.

Suhendran highlighted that no bankruptcy petitions had yet been filed, despite bankruptcy notices being served in April 2021, and stated that LHDN was entitled to continue its actions.

According to earlier findings, the Federal Court on 16 October 2023 ruled that Najib and his son must settle their outstanding taxes, dismissing their attempt to overturn a High Court decision.

That ruling allowed LHDN to move forward with bankruptcy actions unless the tax liabilities were cleared.

Lawyer Wee Yeong Kang, representing the appellants, said he had been instructed to file a further appeal against the High Court’s latest decision.

Najib is appealing against two bankruptcy notices linked to additional tax assessments previously totalling RM1.46 billion.

These assessments have increased to RM1.69 billion following penalties and accrued interest.

He maintains that the tax assessments are flawed and should not be enforced while related proceedings remain ongoing in other courts.

According to earlier court documents, the government, through LHDN, filed a claim on 25 June 2019 requiring Najib to settle the unpaid taxes with 5% annual interest from the date of judgment, including costs and any additional compensation deemed appropriate.

On 16 October 2023, the apex court dismissed their appeals against the High Court’s summary judgment ordering the payment in unpaid taxes and penalties

LHDN has alleged that Najib failed to pay assessed income taxes from 2011 to 2017 within 30 days of receiving the assessment notices.