Two tax evaders to be jailed<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Directorate General of Taxation is seeking to send two
\nuncooperative expatriates to prison for failing to pay a total of
\nRp 67 billion (US$7.97 million) in tax arrears, a senior tax
\nofficial said.<\/p>\n
"We are still waiting for the green light from the Minister of
\nFinance for the two expatriates to be put into jail. But if they
\ncooperate we will drop the plan," Director General of Taxation
\nHadi Purnomo told the press on Tuesday.<\/p>\n
The Directorate General of Taxation has also warned another 16
\nexpatriates that they could face the same fate if they continue
\nrefusing to pay their taxes.<\/p>\n
Hadi declined to reveal the identity of the two foreigners.<\/p>\n
However, a source at the directorate said the two foreigners
\nwere from the United Kingdom and Japan.<\/p>\n
Hadi said the two foreigners had been barred from leaving the
\ncountry.<\/p>\n
The tax directorate has accused them of failing to pay their
\ncorporate and personnel income taxes.<\/p>\n
Meanwhile, the outgoing head of the tax collection division at
\nthe Directorate General of Taxation, Djangkung Sudjawardi, said
\nthe two expatriates worked in local units of prominent
\nmultinational companies.<\/p>\n
"They don't work in small or medium companies, but in large
\nones. They are dealt with by the special tax office for foreign-
\ninvestment companies and publicly listed companies," said
\nDjangkung, who even refused to reveal in which businesses the
\nfirms operated.<\/p>\n
Djangkung said his the directorate general would inform the
\nembassies of the two foreigners if the Minister of Finance gave
\nhis approval for their detention.<\/p>\n
According to the prevailing regulations, the Director General
\nof Taxation is allowed to send tax evaders to jail. However, in
\nthe case of those defaulting on taxes levied by the central
\ngovernment, such as income tax, land and property tax and value-
\nadded tax, the tax office must first obtain the approval of the
\nMinister of Finance before acting.<\/p>\n
In the case of taxes imposed by local governments, such as
\nvehicle tax, restaurant tax and entertainment tax, local tax
\nofficials only need the approval of the respective governor.<\/p>\n
For the first time in the country's recent history, the tax
\ndirectorate general recently sent a tax evader to prison for
\nfailing to pay Rp 11 billion in tax arrears. The tax evader,
\nidentified only by the initials JL, was sent to Cipinang
\npenitentiary on Monday morning after being on the run for four
\ndays.<\/p>\n
Djangkung said that as of the first nine months of this year,
\nthe level of tax arrears had increased by 38 percent to Rp 18
\ntrillion from Rp 13 trillion in the same period of last year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-tax-evaders-to-be-jailed-1447893297",
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