Property tax errors admitted but no corrections planned<\/p>\n
Rendi A.Witular, The Jakarta Post, Jakarta<\/p>\n
Tax officials have admitted they made some major miscalculations
\nthat caused property taxes here to skyrocket, but the
\nacknowledgment does not necessarily mean that all the mistakes
\nwill be corrected.<\/p>\n
\"We can't make a correction unless the taxpayers file an
\nobjection,\" a tax official at the Directorate General of Tax
\nsaid.<\/p>\n
Before filing the objection, the complainants should pay the
\ntax first, according to the official, who spoke to The Jakarta
\nPost under condition of anonymity.<\/p>\n
He claimed that the miscalculation was caused by the lack of
\nprofessional staff at the tax offices, as they have to input data
\nfor more than a million taxpayers into the computer.<\/p>\n
However, when the Post visited two mayoralty tax offices
\nlocated on Jl. KS. Tubun, Central Jakarta, and on Jl. Raya Pasar
\nMinggu, South Jakarta, last week, most of the employees -- who
\nare paid with taxpayer money -- were seen hanging around doing
\nnothing.<\/p>\n
A number of people had earlier complained about the increased
\nproperty tax, which in some cases reached more than 300 percent.
\nA resident who lives in Puri Kembangan, West Jakarta, for
\nexample, complained that he had to pay Rp 2.2 million this year,
\nwhile last year, it was only Rp 700,000.<\/p>\n
The director of property tax at the Ministry of Finance said
\nthe Directorate General of Tax had only imposed an increase of 5
\npercent of property tax as of Jan. 1. He claimed that the sharp
\nincrease of the tax was caused by a miscalculation and resulting
\nerrors in data input at the mayoralty tax offices.<\/p>\n
Even though taxpayers have the right to file the complaints at
\nthe mayoralty tax office, there is no guarantee that they will
\nget a quick, positive response.<\/p>\n
The tax official interviewed by the Post said that the tax
\noffice has one year to make a decision about the complaints.
\nWithin that period, a letter would be sent to the complainants'
\naddress, and the answer could be simply \"yes\" or \"no\".<\/p>\n
If the taxpayers are not satisfied, they can \"appeal\" to the
\ntax dispute settlement agency (BPSP) and go to court. A
\ncomplainant should send a letter to the agency and enclose
\nnecessary documents.<\/p>\n
The agency will check the documents and ask for a
\nclarification from the Directorate General of Tax. This process
\ncould take up to four months.<\/p>\n
If the taxpayers need a lawyer, they are encouraged to hire
\nthe ones who have a specific tax license issued by the tax
\nagency.<\/p>\n
Taxpayers are not allowed an appeal if they lose the case,
\nsaid secretary of the agency, Achmad Suhari.<\/p>\n
\"This is not a usual court where people could ask for an
\nappeal to the high court or Supreme Court. Our decision is
\nfinal,\" he said.<\/p>\n
Currently, BPSP has 20 judges, selected under BPSP procedures.<\/p>\n
From 1999 to 2001, 32 property taxpayers filed complaints to
\nthe BPSP. However, only five were granted tax reductions.<\/p>\n
The complicated process to seek justice in tax value
\nobjections has precluded individuals from pursuing their
\nobjection to BPSP. According to Achmad, all of the taxpayers who
\nbrought the case to the agency were private companies.<\/p>\n
\"Private companies usually pursue their case here, as their
\nproperty tax values are very high, usually over Rp 20 million.
\nWhile individuals' taxes are usually far lower and they prefer to
\njust settle their objection at the mayoralty tax office\", said
\nAchmad.<\/p>\n
The 1999-2001 statistics issued by the Directorate General of
\nTax, showed that each year, about 10 percent of taxpayers in the
\ncapital -- now more than 1.48 million -- filed a tax objection at
\ntheir respective mayoralty office.<\/p>\n
The overall amount of the objections filed by taxpayers was Rp
\n28.796 billion (around US$ 280,000), in which only Rp 7.87
\nbillion was returned to taxpayers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/property-tax-errors-admitted-but-no-corrections-planned-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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