'Corrupt tax officials should also be detained'<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Businessmen and analysts voiced support for the government's
\nplan to put recalcitrant tax evaders into jail without trial.<\/p>\n
They added, however, that similar treatment should be meted
\nout to corrupt tax officials.<\/p>\n
Mogul Sofjan Wanandi told The Jakarta Post on Friday that it
\nwould be only fair if corrupt tax officials were also thrown into
\njail without trial as part of the effort to stop widespread
\ncorruption and extortion in the tax office.<\/p>\n
\"The government should be fair to the public. Corrupt tax
\nofficials who get away with stealing billions of rupiah should
\nalso get a taste of life in the country's jails,\" said Sofjan,
\nwho is also the chairman of the National Economic Recovery
\nCommittee (KPEN).<\/p>\n
Sofjan explained that so far there had never been a tax
\nofficial put on trial on corruption charges.<\/p>\n
The stiffest punishment imposed on them was dismissal from the
\nservice, he said, adding that even this was very rare.<\/p>\n
Sofjan was commenting on the government's plan to send tax
\nevaders to jail for a maximum of one year without trial as
\nstipulated in a new joint decree to be signed by the minister of
\nfinance and the minister of justice and human rights next month.<\/p>\n
The decree, which will come into effect \"sometime in April\",
\nis aimed at reinforcing Government Regulation No. 137\/2000 on tax
\nevasion, which permits such punishment.<\/p>\n
The decree has been drafted amid the government's growing
\nconcerns over the rising level of tax arrears, which have reached
\nRp 17 trillion (US$1.9 billion) over the past 10 years.<\/p>\n
Thus far, the tax office has only confiscated the assets of
\ntax evaders or banned them from traveling overseas.<\/p>\n
Based on the joint decree, temporary detention may be imposed
\non uncooperative taxpayers who owe taxes of over Rp 100 million
\nto either the central or local governments.<\/p>\n
Transparency International Indonesia (TII) secretary-general
\nEmmy Hafild supported Sofjan, saying it would be wise for the
\nDirectorate General of Taxation to set an example of proper
\naccountability.<\/p>\n
\"First, clear out all the 'rats' from the directorate before
\npunishing taxpayers,\" she said.<\/p>\n
She warned that the decree could further nurture extortion and
\ncollusion in the directorate as it could be abused by officials
\nto intimidate compliant taxpayers.<\/p>\n
An auditor at a tax office in Jakarta, who spoke on condition
\nof anonymity, told the Post that last year, tax losses caused by
\ncollusion between tax officials and taxpayers could well have
\nreached the alarming figure of Rp 160 trillion (US$17.9 billion).<\/p>\n
The auditor said that it was impossible for collusion cases to
\nbe disclosed to the public as both tax officials and taxpayers
\nwere protected by Law No. 19\/2000 on taxpayer confidentiality.<\/p>\n
\"Only the taxpayers, the tax officials, the devil and God know
\ntheir exact tax obligations,\" said the auditor.<\/p>\n
This year, the government has targeted the collection of tax
\nreceipts worth Rp 210 trillion, a 16 percent rise over the 2002
\nfigure of Rp 180 trillion.<\/p>\n
Elsewhere, legal expert Luhut Pangaribuan said the detention
\nof recalcitrant taxpayers without trial, or what is technically
\nknown as gizelling in the Dutch and Indonesian legal systems, was
\nlegal as it was permitted under Law No. 19\/2000 on taxation.<\/p>\n
\"Many countries also have laws that allow the temporary
\ndetention of non-compliant taxpayers,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/corrupt-tax-officials-should-also-be-detained-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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