Govt gets tough against tax evaders<\/p>\n
Muninggar Sri Saraswati and Dadan Wijaksana, The Jakarta Post,
\nJakarta<\/p>\n
The Ministry of Finance and the Ministry of Justice and Human
\nRights have signed a joint decree allowing tax evaders to be
\ntemporarily detained without trial, a move expected to boost
\ncompliance with tax laws.<\/p>\n
The decree, signed on Wednesday by Minister of Finance
\nBoediono and Minister of Justice and Human Rights Yusril Ihza
\nMahendra, will allow recalcitrant taxpayers to be "taken
\nprisoner" by a penitentiary for a maximum of one year.<\/p>\n
Boediono said the new policy was aimed at "securing the
\ngovernment's rights (in collecting tax). And we will use it
\nfairly and honestly to secure the country's taxation system."<\/p>\n
The policy was meant as a shock tactic against tax evaders as
\nwell as a means to boost the collection of tax revenue, which is
\nbadly needed by the cash-strapped government to finance the state
\nbudget.<\/p>\n
"However, if the (recalcitrant) taxpayers reject our
\ncalculations of their taxes, they might take it to the taxation
\ncourt or report it to the taxation ombudsman," Boediono told a
\npress conference.<\/p>\n
The ruling would provide more ammunition to the existing
\nRegulation No. 137\/2000, which was enacted in early 2001, that
\nempowers the tax office to detain tax evaders. But the regulation
\nwas not effective, in part due to a lack of support from the
\nMinistry of Justice and Human Rights, which oversees
\npenitentiaries.<\/p>\n
So far, measures taken by the tax office against uncooperative
\ntaxpayers have mainly focused on freezing their accounts, seizing
\ntheir assets and banning travel.<\/p>\n
Under the joint decree, errant taxpayers who fail to fulfill
\ntax obligations of more than Rp 100 million (US$12,000) may be
\nplaced under temporary detention.<\/p>\n
According to data from the tax office, tax arrears have been
\non the rise in the past three years, amounting to Rp 13.3
\ntrillion, Rp 17.3 trillion and Rp 17.1 trillion in 2001, 2002 and
\n2003, respectively.<\/p>\n
Director General for Taxation Hadi Purnomo said that the tax
\noffice would issue several warnings before sending tax evaders to
\nprison.<\/p>\n
"If they haven't paid after 37 working days, we'll send a
\nwarning; 21 days after that, we will send a reprimand. If they
\nstill show no good will, we'll issue a travel ban.<\/p>\n
"We will send the tax evaders to prison if they show no
\nintention to settle their obligation 21 days after the ban has
\nbeen issued," he explained.<\/p>\n
Hadi said that tax evaders could be imprisoned for six months,
\na sentence which could be extended for another six-month period.
\nThe tax office will issue an order to seize and auction the
\nevaders' assets during the period of incarceration.<\/p>\n
He added that between the end of 2002 and the second week of
\nJune, the office had issued 39 travel bans, including against
\neight expatriates. These 39 tax evaders would likely be targeted
\nfirst under the new ruling.<\/p>\n
Yusril said the tax evaders who had been imprisoned under the
\nnew ruling would receive different treatment at the penitentiary
\nfrom ordinary prisoners or convicted criminals.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-gets-tough-against-tax-evaders-1447893297",
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