Offer on tax incentive unfair<\/p>\n
According to point K, article 1, chapter 4 of Law No. 10\/1994
\non Income Tax, income originating from written-off debts is
\nsubject to income tax with a rate of 30 percent.<\/p>\n
Recently, Director General of Taxes A. Anshari Ritonga said at
\na seminar that the government would exempt tax on income
\noriginating from the debts written off by domestic banks or
\noverseas creditors.<\/p>\n
The foreign debts of Indonesia's private sector companies have
\nreached about US$80 billion, while the bad loans at domestic
\nbanks are estimated at Rp 150 trillion (US$17 billion). Those
\nenjoying the loans are conglomerate owners who have improperly
\nwasted the loans for unproductive purposes, leading to the
\ncurrent economic and monetary crisis, which, in turn, caused
\nheavy burdens on the majority of the Indonesian people. Some of
\nthe owners have allegedly transferred the funds to other
\ncountries for investment or deposited them in banks.<\/p>\n
There raises a question: Will the people who have personally
\nenjoyed great benefits be offered a tax facility in the form of
\ntax exemption?<\/p>\n
I think this is unfair if we consider the interests of the
\nwhole Indonesian people. The planned tax exemption will benefit
\nonly a small group of rich people, who used to be the cronies of
\nformer president Soeharto. I don't believe that those people have
\nbecome poor. They still have personal (not corporate) assets in
\nIndonesia. Actually, the government could confiscate their assets
\nfor the payment of written-off debts.<\/p>\n
Furthermore, the government may not violate the law. If it
\nwants to drop point K, article 1, chapter 4 of Law No. 10\/1994 on
\nIncome Tax, it must do it constitutionally by submitting a new
\ndraft bill to the House of Representatives as required by article
\n2, chapter 23 of the Constitution of 1945. House members must be
\nalert and careful in deliberating the bill because they will have
\nto be fair to the people.<\/p>\n
It is worth noting that there are many regulations under the
\nexisting tax laws, which are unfair and authoritarian, creating
\ndouble taxation and reducing the rights of taxpayers.<\/p>\n
SUHARSONO HADIKUSUMO<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/offer-on-tax-incentive-unfair-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }