IRB hunts Najib’s undeclared income of RM 4 billion

IRB hunts Najib’s undeclared income of RM 4 billion

KUALA LUMPUR — Former prime minister Datuk Seri Najib Razak has an undeclared a total income of close to RM 4 billion between 2011 and 2017 which includes the alleged RM2.6 billion donations from Saudi Arabia.

The Inland Revenue Board is billing Najib for a total of RM1.5 billion, reported The Edge Financial Daily based on a letter that was delivered to Najib a week ago.

The Inland Revenue Board (IRB) has reportedly billed Datuk Seri Najib Razak for an extra RM1.5 billion of income tax which it said was due between 2011 and 2017.

Last year, Najib had admitted that he did not verify the source of the RM2.6 billion that ended up in his bank account, which had allegedly been siphoned from 1Malaysia Development Bhd (1MDB).

Speaking to Al Jazeera’s 101 East show, the former prime minister said he had assumed the money was “donations” connected to Saudi Arabia’s King Abdullah bin Abdulaziz Al Saud after the latter gave assurance of his support.

The financial daily also quoted tax experts saying donations are subject to income tax. They also concurred that Najib committed an offence by not declaring the RM2.6 billion as his income, regardless of the source.

“All incomes are taxable, whether legitimately earned or not,” one tax expert was quoted saying.

“If the income is illegal proceeds, it is up to other agencies like the police or Malaysian Anti-Corruption Commission to investigate if a crime has been committed.

“As far as IRB is concerned, it’s subject to income tax,” he added.

Najib faces dozens of charges of criminal breach of trust, power abuse and money laundering over the use of funds linked to sovereign investment company 1MDB during his tenure as prime minister; seven of them concern SRC International Sdn Bhd.

The SRC International trial is set to begin this Wednesday, after a stay order was lifted by the Federal Court last week.

“Firstly, political contribution including from the Saudi Arabia Ministry of Finance is not subject to tax under the law.

“Secondly, as is publicly known, income obtained from abroad are not taxable under taxation laws,” the former Umno president claimed in a Facebook post.