Five hotels reported to tax arrears<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
Stepping up its move against tax evaders, the Jakarta
\nadministration has reported five hotels to the Jakarta
\nProsecutor's Office for failing to clear their tax arrears.<\/p>\n
However, the administration has yet to decide if it will seize
\nthe hotels or ask the hotel management to be \"held hostage\" for
\nevading tax.<\/p>\n
Head of the City Revenue Agency Deden Supriadi said on Monday
\nthat the five hotel managements had been reported to the
\nprosecutors office in mid-July after his agency did not see any
\ngoodwill from them.<\/p>\n
\"Only tax evaders that refused to cooperate would be reported
\nto the prosecutors office,\" Deden told the media before attending
\na plenary session at the City Council on the revision of the city
\nbudget.<\/p>\n
He named only three of the five hotels -- Sahid Jaya, Omni
\nBatavia and Park Plaza.<\/p>\n
The agency announced earlier that Sahid Jaya's tax arrears
\ntotaled Rp 13.27 billion (US$1.56 million), Park Plaza's Rp 2.37
\nbillion and Omni Batavia's Rp 1.62 billion.<\/p>\n
None of the three hotel managements were available for
\ncomment.<\/p>\n
The hotels were among dozens of tax evaders, including
\nhotels, restaurants, entertainment centers and outdoor
\nadvertisement firms, whose total tax arrears amounted to around
\nRp 58.5 billion.<\/p>\n
The agency has issued 70 distress orders to the tax evaders
\nbut has so far collected only Rp 3.5 billion from the companies.<\/p>\n
Deden said that apart from reporting the tax evaders to the
\nprosecutors office, he would also continue his previous move of
\nissuing distress orders against the tax evaders who refused to
\ncooperate with his agency.<\/p>\n
Asked why he had not issued seizure orders against the tax
\nevaders, he argued that the 70 tax evaders that had been given
\ndistress warrants had begun paying their arrears in installments.<\/p>\n
Based on Law No. 19\/2000 on the enforced collection of taxes,
\nthe agency is authorized to compel tax evaders to pay their
\narrears or face seizure of their assets.<\/p>\n
Many criticized that tax evasion often occurred because of
\ncollusion between taxpayers and officials at the agency.<\/p>\n
Last year, the administration asked the Central Jakarta
\nDistrict Court to seize Hotel Mulia Senayan, Central Jakarta, but
\nthe court annulled the seizure as the hotel started to repay its
\ndebt to the administration, which amounted to Rp 15 billion.<\/p>\n
The central government announced earlier that it planned to
\nplace tax evaders in detention.<\/p>\n
Government regulation No. 137\/2000, which came into effect
\nearly in 2001, gives the tax office authority to detain tax
\nevaders.<\/p>\n
Three blocks, consisting of three to five cells at Cipinang
\nprison, East Jakarta, have been made ready to hold tax evaders
\nuntil they agree to pay their obligations to the state.<\/p>\n
Similar preparations have also been made at Salemba
\npenitentiary, Central Jakarta, for tax evaders in the city.<\/p>",
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