Controversial article in tax law dropped<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government has finally revoked a controversial article in
\na draft revision to the country's tax legislation, which gives
\nthe tax office greater powers to detain violators, following
\nprotests from government agencies and business leaders.<\/p>\n
Robert Pakhpahan, a member of the tax reform team at the
\nDirectorate General of Taxation, told The Jakarta Post on Tuesday
\nthat the directorate had decided to drop the article for fear
\nthat it would hurt business confidence.<\/p>\n
The Directorate General of Taxation, which falls under the
\nauspices of the Ministry of Finance, has drafted amendments to
\nthree tax laws: Law No. 16\/2000 on general taxation arrangements
\nand procedures, Law No. 17\/2000 on income tax and Law No. 18\/2000
\non value-added tax on goods and services and luxury sales tax.<\/p>\n
The directorate has included several articles in the amendment
\nto Law No. 16\/2000 that will confer greater authority on the tax
\noffice to detain major tax evaders without trial and impose
\nstronger sanctions on a range of lesser violations.<\/p>\n
Under the draft law, a tax official assigned to investigate a
\ntax crime will have special powers -- similar to those of the
\npolice -- to arrest and detain people suspected of committing tax
\ncrimes.<\/p>\n
Moreover, the directorate will also have direct, full
\nauthority to investigate a tax crime without consulting the
\npolice -- the way the current system works, but which has been
\ndeemed ineffective.<\/p>\n
However, business leaders and economists have criticized the
\ndrafts, saying they contain many loopholes that would allow for
\ncorruption and misuse of power.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/controversial-article-in-tax-law-dropped-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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