After five days on the run, a tax evader surrenders<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After five days on the run from police because of fears of
\nbeing humiliated by extensive media coverage, a tax evader known
\nsimply as JL surrendered to tax officials on Monday.<\/p>\n
JL, who runs an import business identified as PT EI in Sawah
\nBesar subdistrict in Central Jakarta, is the first man in the
\ncountry's history to be jailed for failing to cooperate in
\nsettling tax arrears with the state.<\/p>\n
The outgoing head of the tax collection division at the
\nDirectorate General of Taxation, Djangkung Sudjawardi, said JL
\nsurrendered and was picked up by tax officials at an undisclosed
\nlocation.<\/p>\n
Djangkung was quoted by Antara as saying the extensive media
\ncoverage had scared JL, who went into hiding after hearing he
\nwould be picked up by tax officials to be sent to prison.<\/p>\n
He said that officials had reached an agreement that JL would
\nsurrender if the department did not bring the media along to
\ncover the arrest.<\/p>\n
JL was sent to the Cipinang penitentiary on Monday morning at
\naround 10 a.m., he said.<\/p>\n
JL ran away last week after the director general of taxation,
\nHadi Purnomo, held a press conference to state that JL had been
\nsent to Salemba penitentiary in Central Jakarta. This was not the
\ncase but Purnomo could not be reached to clarify his comments.<\/p>\n
The tax office said JL had been jailed for an as yet
\nundetermined time for failing to pay Rp 11 billion (US$1.32
\nmillion) in tax arrears.<\/p>\n
Government Regulation No. 137\/2000, which came into effect
\nearly in 2001, permits the office to detain tax evaders. However,
\nin the beginning it was reluctant to carry out its mandate given
\nthe lack of support from other ministries.<\/p>\n
The tax office would only go as far as confiscating the assets
\nof tax evaders or banning them from traveling overseas.<\/p>\n
But the office, under pressure to collect higher tax revenue
\nto help finance the state budget, is getting more serious with
\ntax evaders. It recently warned another 70 tax evaders that they
\ncould face the same fate of JL if they continued to withhold
\ntheir tax payments.<\/p>\n
Concerning JL's family, who agreed to settle the tax arrears,
\nDjangkung said they could do so but the detention of JL could not
\nbe annulled, pending the full payment of his taxes to the state.<\/p>\n
Djangkung said JL could file an objection with the
\nadministrative court while in detention. In the case of JL
\nwinning an appeal against his detainment, the directorate would
\npay compensation of Rp 100,000 for each day JL was detained and
\npublish an announcement in a domestic newspaper to rehabilitate
\nhis name.<\/p>\n
As of the first nine months of this year, tax arrears
\nincreased by 38 percent to Rp 18 trillion from Rp 13 trillion in
\nthe same period last year.<\/p>",
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