Tax evaders get another six months behind bars<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The Directorate General of Taxation is planning to extend the
\nprison terms of two businessmen, one of whom is a foreigner,
\ncurrently under detention for tax evasion as they have still not
\nshown goodwill in paying their tax arrears.<\/p>\n
\"We will extend their detention for another six months,\" said
\ndirector general Hadi Purnomo on Wednesday after opening a
\nseminar on taxation at the State Accountancy Academy (STAN).<\/p>\n
The two tax evaders, local businessman Jasman Lim and British
\nexecutive Mark Michael Greenwood, are currently sharing a cell at
\nthe high-security Cipinang Penitentiary in East Jakarta.<\/p>\n
Jasman was sent to prison last October for allegedly evading
\ntaxes amounting to Rp 11 billion (US$1.29 million). His six-month
\ndetention expires on April 27.<\/p>\n
Greenwood, meanwhile, was detained last November for failing
\nto pay Rp 45.8 billion in income tax arrears that have
\naccumulated since 1998. He will end his term on May 10.<\/p>\n
The directorate general had previously considered canceling
\nJasman's extension, as he had begun to pay off his tax arrears in
\ninstallments.<\/p>\n
Hadi further said that his office could only extend the
\ndetention for another six months, as permitted under the existing
\nregulation.<\/p>\n
Government Regulation No. 137\/2000, which came into effect
\nearly in 2001, authorizes the directorate general to detain tax
\nevaders without trial for a maximum period of one year, after
\nwhich the office is to hand the case over to the police.<\/p>\n
The regulation also requires the directorate general to first
\nobtain approval from the Minister of Finance, before detaining
\nanyone suspected of defaulting on government taxes such as income
\ntax, land and property tax and value-added tax.<\/p>\n
The directorate earlier announced a plan to detain another 41
\ntax evaders, including three foreigners, accused of refusing or
\nfailing to pay corporate and personnel taxes totaling Rp 287
\nbillion as of March 17.<\/p>\n
The 41 tax evaders have been prohibited from leaving the
\ncountry, but the directorate has not yet sought approval from the
\nMinistry of Finance for their detention.<\/p>\n
\"There are also 12 procedural steps we have to pass through
\nbefore we ask for approval\", Hadi said, without elaborating on
\nthe steps, or the identity of the foreign nationals.<\/p>\n
\"Besides, some of them have already started to give some
\nassurance that they will pay their tax arrears,\" he continued,
\nadding that his office would, however, still monitor the suspects
\nuntil their taxes were due in May.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tax-evaders-get-another-six-months-behind-bars-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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