Govt launches probe into tax bribery<\/p>\n
JAKARTA (JP): Director General of Taxes Anshari Ritonga said
\nhere on Wednesday his office had not yet found any indications of
\nbribes from Japanese contractors to local tax officials, but
\nvowed to continue the investigation.<\/p>\n
Ritonga said his office had counted 18 Japanese-affiliated
\nfirms under the Kajima name and 18 others under the name of
\nTaisei, and it was not yet clear which companies were involved in
\nthe suspected bribes.<\/p>\n
"Kajima Corp. has 18 subsidiaries in Indonesia. It means they
\nmust have been involved in at least 18 projects. This also
\nhappens with Taisei Corp, which has 18 subsidiaries here,"
\nRitonga said.<\/p>\n
It was not yet clear which projects they were involved in, and
\nwhether they were government or private projects.<\/p>\n
If the companies had worked on government projects funded by
\nforeign loans, they were not required to pay any income tax or
\nvalue-added tax, Ritonga said.<\/p>\n
"It means it was not necessary for them to bribe tax officials
\nto get tax relief," Ritonga said.<\/p>\n
It was the Yomiuri Shimbun newspaper which uncovered the
\nalleged bribes by Japanese firms to Indonesian tax officials,
\nimplicating Kajima Corp. and Taisei Corp.<\/p>\n
Quoting Tokyo tax authority sources, the newspaper reported
\nthat Kajima Corp alone paid 80 million yen (US$660,000) in
\nsuspected bribes to Indonesian tax officials.<\/p>\n
A Kajima spokesman was quoted by the newspaper as saying that
\nthe payments were made to "settle tax negotiations".<\/p>\n
The payments suggested deep-rooted corruption in the
\nIndonesian tax authority and the collusion of officials with
\nJapanese construction firms, the paper said. Such payments were
\nroutine for Japanese firms working in the country.<\/p>\n
Other Japanese contractors have also been implicated in
\nsuspected illegal payments to Indonesia.<\/p>\n
Kajima won 21 construction contracts in Indonesia between 1994
\nand 1997 worth a total 22 billion yen, the paper said.<\/p>\n
Meanwhile, Coordinating Minister for Economy, Finance and
\nIndustry Ginandjar Kartasasmita said the government had assigned
\nCoordinating Minister for Development Supervision and
\nAdministrative Reforms Hartarto to launch an investigation into
\nthe bribery allegations.<\/p>\n
Ginandjar wrote a letter, dated April 12, to Japanese
\nAmbassador to Jakarta Takao Kawakami, asking the Japanese
\ngovernment to help in the investigation.<\/p>\n
He said the incident could affect relations between the two
\ncountries and could even influence the Japanese public's
\nwillingness to assist the Indonesian government in its economic
\nrecovery program.<\/p>\n
"We are hopeful that the government of Japan will be able to
\nshare with the government of Indonesia any information from your
\ninvestigation into corruption, bribery, or other illegal acts,
\ninvolving Japanese private companies and Indonesian government
\nofficials.<\/p>\n
"To the extent that information can be provided by the
\nJapanese authorities, both the quality and the speed of our
\ninvestigation will be enhanced," Ginandjar said in his letter.
\n(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-launches-probe-into-tax-bribery-1447893297",
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"sponsor": "Okusi Associates",
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