Three people arrested for alleged tax fraud<\/p>\n
JAKARTA (JP): The Attorney General's Office has detained three
\nbusinessmen, and will probably arrest two others soon, for
\nallegedly manipulating the 10 percent value added tax.<\/p>\n
The office's spokesman, Pontas Pasaribu, told reporters
\nyesterday that Hartono, Baharuddin Umar and Tony Effendy, who
\nwere arrested on Thursday, were suspected of forging tax invoices
\nthat may have caused financial losses of up to Rp 58.03 billion
\n(US$26.37 million).<\/p>\n
\"There are strong indications that the three men, along with
\nthe other two who have yet to be arrested, have violated...the
\n1971 Anti-corruption Law,\" Pasaribu said.<\/p>\n
Violators of Article 1a face a maximum sentence of life
\nimprisonment.<\/p>\n
Pasaribu also said that the five businessmen were suspected of
\nbelonging to a syndicate of 51 trading companies currently under
\ninvestigation for alleged tax invoice forgery. The companies are
\nlocated in Jakarta and its satellite cities of Tangerang and
\nBekasi.<\/p>\n
Pasaribu said some of the companies sold fictitious tax
\ninvoices which stated that some transactions or importing
\nactivities had been conducted with other members of the
\nsyndicate. The latter could then claim a 10 percent refund of
\ntheir value added tax at the office of the Directorate General of
\nTax.<\/p>\n
By law, trading companies with gross sales of at least Rp 240
\nmillion (approximately US$105.263) should register for taxable
\nfirm status at the tax office.<\/p>\n
Smaller companies may also request the same status, which
\nallows them to collect the 10 percent value added tax from their
\ncustomers.<\/p>\n
The taxes collected by the companies, under the existing
\nmechanism, can be credited against similar taxes already paid to
\ntheir wholesalers. When the amount of taxes paid is higher than
\nthe sum collected, the companies are allowed to have the
\ndifference refunded.<\/p>\n
Pasaribu said that a number of the 51 trading companies are
\nalso suspected of falsifying names and addresses to fool tax
\nofficials.<\/p>\n
He said that the companies selling the fictitious invoices
\nwould be fined one to three percent, or about Rp 25 (US 1 cent),
\nfor every US dollar worth of imported goods.<\/p>\n
The Attorney General's Office, fearing the suspects might
\nescape, has also slapped a travel ban on the five businessmen.<\/p>\n
He did not deny the possibility of tax officials being
\ninvolved in the tax scam.<\/p>\n
\"We will question the Central Jakarta office of the Tax
\nDirectorate General on Monday about the tax manipulation,\" he
\nsaid. (imn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/three-people-arrested-for-alleged-tax-fraud-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}