Timor Putra 'must pay' Rp 3.09t in back taxes<\/p>\n
JAKARTA (JP): PT Timor Putra Nasional automobile company,
\nwhich is controlled by former president Soeharto's youngest son,
\nHutomo Mandala Putra, popularly known as \"Tommy\", was given until
\nDec.18 to pay Rp 3.09 trillion (US$412 million) in back taxes and
\nimport duties, Director General of Taxation Anshari Ritonga said
\non Friday.<\/p>\n
\"If the company fails to pay by the deadline, it will be
\nserved a letter of warning which gives it another 14 days to
\nsettle its tax obligation,\" Ritonga told reporters.<\/p>\n
If the car company also fails to meet the second deadline, the
\ntax collection will be entrusted to the State Receivership
\nAgency, he added.<\/p>\n
Companies referred to the State Receivership Agency usually
\nend up in liquidation.<\/p>\n
Timor Putra, which was assigned in 1996 by the then President
\nSoeharto to develop a national car, was granted import duty and
\ntax exemptions for importing completely built-up sedans from
\nSouth Korea's Kia Motor Co..<\/p>\n
The privilege was granted on the condition that the company
\nwould set up an assembly plant in the country in the second year
\nof operation and gradually increase the use of local components.<\/p>\n
However, the company failed to fulfill the terms and was
\ntherefore required to pay import duties and taxes due on the
\n40,960 cars it had imported.<\/p>\n
The Attorney General's Office, which is investigating
\nallegations of corruption, collusion and nepotism in the granting
\nof special privileges to Timor Putra, has called the national car
\nproject a symbol of nepotism that may have cost the government
\nUS$ 1.5 billion.<\/p>\n
The project, according to the Attorney General Andi M. Ghalib,
\nwas made possible only with the collusion of Soeharto and
\ngovernment officials.<\/p>\n
Japan, the European Union and the United States took Indonesia
\nto the World Trade Organization (WTO) in Geneva last year and won
\na ruling in their favor.<\/p>\n
Timor Putra also owes hundreds of millions of dollars in loans
\nto a consortium 16 private and state banks. (das\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/timor-putra-must-pay-rp-309t-in-back-taxes-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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