Kuala lumpur: The Court of Appeal has scheduled its decision for September 4 regarding the appeals made by former Prime Minister Datuk Seri Najib Tun Razak and his son, Datuk Mohd Nazifuddin. They are seeking a stay on bankruptcy proceedings initiated against them.

According to BERNAMA News Agency, a three-member bench, including Datuk Dr. Alwi Abdul Wahab, Datuk Dr. Shahnaz Sulaiman, and Datuk Ong Chee Kwan, heard arguments from both sides. Tan Sri Muhammad Shafee Abdullah represented the appellants, while Senior Revenue Counsel Norhisham Ahmad appeared for the Inland Revenue Board (IRB). The bench decided to reserve its judgment following the hearing.

The appeals challenge the High Court's decision from November 17, 2025, which denied their request for a stay on the bankruptcy proceedings. The stay is being sought pending the resolution of their appeals before the Special Commissioners of Income Tax (SCIT), disputing the additional tax assessments issued by the IRB.

The bankruptcy proceedings stem from previous High Court decisions that granted the IRB's requests for summary judgments related to unpaid tax arrears for the years 2011 to 2017. The IRB aims to recover RM1.69 billion from Najib and RM37.6 million from Nazifuddin due to these outstanding tax arrears.

Both Najib and Nazifuddin had previously contested the summary judgments against them. However, their appeals to the Court of Appeal and the Federal Court were dismissed, leading to bankruptcy notices being issued against them. They then sought a stay of the bankruptcy proceedings, which was dismissed by High Court Deputy Registrar Kamarul Aris Kamalluddin on July 29, 2024. Their subsequent appeal to the High Court was also unsuccessful, resulting in the current appeals before the Court of Appeal.

During today's hearing, Muhammad Shafee argued that special circumstances justified granting a stay. He highlighted that the appeals filed by Najib and Nazifuddin before the SCIT, challenging the additional tax assessments, have not yet been resolved. He noted that Najib's SCIT hearing is set for September, while Nazifuddin's is scheduled for October.

Shafee maintained that the SCIT appeals' outcomes would directly impact the appellants' liability for the additional tax assessments. He argued that denying a stay would render these appeals ineffective and lead to Najib potentially being declared bankrupt, causing irreparable harm to his financial status.

In contrast, Norhisham argued that under the Income Tax Act 1967, Najib must settle the tax debt as a prerequisite, despite the ongoing appeal. He stated that no special circumstances warranted a stay, as the law requires payment of the tax liability regardless of any ongoing appellate proceedings before the SCIT.