Tax evasion<\/p>\n
From Suara Karya<\/p>\n
As a witness in the Eddy Tansil trial in the Central Jakarta
\nCourt, Ms Amelia (Manager of Danamon Bank, Tamansari branch)
\nrevealed that defendant ET deposited his money, involving Rp 178
\nbillion, in a Cayman Island bank through the services of Danamon
\nBank. This was done to evade income tax in Indonesia. Beside ET,
\nthere are many people who deposit their money in banks abroad
\nsuch as Macao, Hong Kong, Lichstentein etc., as these countries
\nare \"tax havens\" for depositors. Almost all well-known private
\nbanks in Indonesia give these services.<\/p>\n
There is nothing wrong with this practice because since the
\nbeginning of the New Order era Indonesia has introduced a free
\nforeign exchange policy. In other words, foreign currencies can
\nbe brought in or transferred out of Indonesia without permission
\nfrom the Ministry of Finance and the Central Bank, and virtually
\nwithout control.<\/p>\n
The money deposited abroad will generally be channeled back to
\nIndonesia as credits to banks in this country, and these banks
\nwill in turn extend the money to clients as loans. Basically this
\nsystem does not harm the society, but the interest rate of the
\nloan can be very high.<\/p>\n
In this case, the government of Indonesia suffers great losses
\nbecause it cannot collect taxes on interest of money deposited
\nabroad. There is no obligation for the banks in Indonesia,
\naccording to Law No 7\/1983 article 23, to collect income tax when
\npaying the interest of money deposited abroad. Also, based on
\nBasic Law on Banks 1992, the banks in Indonesia have a legal
\nobligation to keep the client's finances confidential, unless
\nthere is permission from the Ministry of Finance. This law is a
\ngreat advantage to wealthy people, corruptors,and manipulators
\nwho have the facilities to personally deposit their money abroad,
\nor through banks in Indonesia.<\/p>\n
They enjoy income-tax evasion in Indonesia, and only have to
\npay a very small amount of tax in the country where they deposit
\ntheir money.<\/p>\n
The Directorate of Tax is helpless in this matter. So
\ninjustice prevails because the common people have no chance to
\nevade taxes, as they are deducted from their salaries. It may be
\nnoted that a vast amount of money is deposited in foreign
\ncountries.<\/p>\n
SUHARSONO HADIKUSUMO<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/tax-evasion-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }