Government vows to crack down on tax evasion<\/p>\n
JAKARTA (JP): Finance Minister Bambang Sudibyo said on
\nWednesday the government would crack down on tax evasion, which
\nis estimated to cost the government billions of dollars a year.<\/p>\n
Bambang said that his office had stepped up cooperation with
\nthe Attorney General's Office, including exchanging information
\non individual taxpayers, to curb tax crime.<\/p>\n
Speaking at a joint media conference with Attorney General
\nMarzuki Darusman, Bambang said people guilty of tax crimes faced
\na maximum six-year jail term or fines of up to four times the
\namount of unpaid tax.<\/p>\n
Bambang said that in the 1991\/1992 fiscal year, the amount of
\ntaxable income not reported to the directorate general of
\ntaxation was estimated at around Rp 27.7 trillion (US$3.12
\nbillion).<\/p>\n
This figure, he added, had jumped to more than Rp 170 trillion
\nin the 1999\/2000 fiscal year alone.<\/p>\n
He said that the amount of taxable income not reported to the
\ntax authorities during the 1990s cumulatively totaled Rp 714.5
\ntrillion, resulting in state losses of some Rp 130.86 trillion in
\nincome tax.<\/p>\n
He said the amount of uncollected income tax in 1991\/1992 was
\naround Rp 5.08 trillion, increasing to Rp 31.08 trillion in
\n1999\/2000.<\/p>\n
"This amount should have been very significant to help finance
\nthe state budget and stimulate the economy," Bambang said.<\/p>\n
But the finance minister did not explain how he calculated
\nsuch figures.<\/p>\n
Bambang said the government did not like conducting criminal
\ninvestigation and prosecuting taxpayers, but it would be forced
\nto take such measures if taxpayers violated existing rulings.<\/p>\n
He said collecting tax revenues was an important element in
\nthe drive to create a healthy and credible fiscal policy which,
\nin turn, would help the country's crisis-hit economy recover.<\/p>\n
"Tax compliance in Indonesia is still very low," Bambang said,
\npointing out that out of the more than 600,000 corporate
\ntaxpayers, only around 200,000 regularly submitted annual tax
\nreturn forms, and out of 1.31 million registered individual
\ntaxpayers, less than 50 percent filed tax returns.<\/p>\n
He said that out of the country's 200 million people, only
\naround 1 percent were registered as taxpayers.<\/p>\n
Marzuki vowed that his office would strongly support the
\nfinance ministry's campaign to curb tax crime.<\/p>\n
"The Attorney General's Office will fully support the efforts
\nof the finance ministry to protect state assets and revenues," he
\nsaid.<\/p>\n
Elsewhere, director general of taxation Mahfud Sidik said that
\nhis office was currently investigating 18 tax-related crimes, 11
\nof which would soon be handed over to the Attorney General Office
\nfor further investigation.<\/p>\n
Mahfud said that the 11 cases involved around Rp 1.3 trillion
\nin unpaid tax.<\/p>\n
He warned tax officials not to collude with taxpayers to evade
\npayment, warning that errant officials would be dealt with
\nfirmly.<\/p>\n
"There's always a possibility for taxpayers to collude with
\ntax officials," Mahfud said. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-vows-to-crack-down-on-tax-evasion-1447893297",
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