Najib owes RM1.5 billion in taxes?

The plot of former Prime Minister Dato’ Seri Najib Abdul Razak’s corruption scandal thickened when the Inland Revenue Board (IRB) slapped him with an extra tax bill of around RM1.5 billion, two days ahead of his much anticipated trial.

IRB’s investigations discovered that Najib has not declared taxable income of almost RM4 billion, including the alleged RM2.6 billion from the 1MDB fund, between the years 2011 to 2017.

However, Najib defended his action, stressing that income in the form of political contributions from foreign countries (in this case, from a Saudi Arabian prince) was not subjected to taxation, as written in the law.

On the other hand, a tax expert told The Edge Financial Daily that all money that went into Najib’s accounts, regardless of their origins, are taxable under the law and not paying it is considered as an offence.

Najib is now facing 42 criminal charges, 10 of which are related to SRC International, a former subsidiary of 1MDB.

The trial is scheduled to start on Wednesday.