Tax chief won't back down on controversial policy<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Despite criticism from business players, the government is
\nsticking by its policy of sending allegedly recalcitrant tax
\nevaders to jail without trial if they continue not to pay the
\ntaxes they owe, a senior tax official has said.<\/p>\n
Director General of Taxation Hadi Purnomo said that the
\ndirectorate would not back down on its recent move to detain
\nalleged tax evaders as the policy was backed by the regulations.<\/p>\n
"The show must go on. We will continue to send uncooperative
\ntax evaders to jail as we have the regulations on our side," said
\nHadi on the sidelines of a hearing with the House of
\nRepresentatives' finance commission on Tuesday.<\/p>\n
He said that the decision was based on Government Regulation
\nNo. 137\/2000 on tax evasion, which permits such action.<\/p>\n
Businessmen and experts said earlier the move by the tax
\ndirectorate could further nurture extortion and collusion as it
\ncould be abused by unscrupulous tax officials to intimidate
\ntaxpayers.<\/p>\n
They said that the government also needed to act as firmly
\nagainst corrupt tax officials.<\/p>\n
However, Hadi said: "There is no regulation that permits the
\ndetention of tax officials without trial. If any abuses of the
\ndetention policy occur, the public should let the directorate
\nknow by providing evidence."<\/p>\n
Thus far, two tax evaders have been jailed, local businessman
\nJasman Lim and Briton Mark Michael Greenwood.<\/p>\n
Jasman was jailed for alleged nonpayment of corporate taxes
\namounting in total to Rp 11 billion (US$1.29 million), while
\nGreenwood's tax arrears were Rp 45.8 billion.<\/p>\n
Hadi said that Jasman had handed over some of his assets in
\npart payment, and that the tax directorate was currently
\nassessing his remaining assets.<\/p>\n
As for Greenwood, the directorate had yet to receive any
\npayment, said Hadi.<\/p>\n
He also said that no officials had come to see him from the
\nBritish Embassy, implying that the embassy had no objections to
\nGreenwood's detention, contrary to press reports.<\/p>\n
The tax directorate, which is a unit of the Ministry of
\nFinance, said there were 68 other tax evaders awaiting detention,
\nincluding 17 expatriates, with a number of them owing larger
\narrears than those allegedly owed by Jasman and Greenwood.<\/p>\n
However, the directorate said they had not been detained yet
\nas they had shown "good cooperation" by handing over assets as a
\nguarantee -- the directorate refused to disclose the details of
\nthese payments so that they could be verified by the public.<\/p>\n
Elsewhere, Hadi said that the directorate planned to set up
\nfive new regional tax offices for the purpose of netting new
\ntaxpayers and at the same time increasing the level of taxpayer
\ncompliance.<\/p>\n
Two new tax offices would be established in Jakarta and one
\neach in West Java, Central Java and East Java.<\/p>",
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