Thu, 10 Mar 2005

Govt revives idea for tax amnesty

Rendi A. Witular, The Jakarta Post, Jakarta

While the pace of reform of the tax system to prevent corruption is not yet in full swing, the government has revived a controversial idea for providing a tax amnesty for certain tax evaders.

There are fears that granting such an amnesty may violate the public's sense of fairness and justice, while it would also be difficult for the tax office to properly determine which taxpayers are indeed eligible for such an amnesty.

"We are currently preparing a draft bill for a tax amnesty to be forwarded soon to the House of Representatives for deliberation. We hope to gain approval from lawmakers for the plan," Vice President Jusuf Kalla told The Jakarta Post on Wednesday.

Kalla did not disclose the objective of the amnesty, but according to a source at the Ministry of Finance it is part of efforts to expand the taxpayer base by encouraging taxpayers -- who may have evaded taxes for many years -- to pay their taxes in future.

Many believe that the amnesty is also aimed at luring back billions of dollars parked overseas by Indonesia's conglomerates in the aftermath of 1997-1998 financial crisis, in order to avoid tax payments.

The source said the amnesty would cover both individual and corporate taxpayers, and they would be able to settle unpaid taxes paying between 10 percent and 20 percent of the total.

For corporate taxpayers, the proposed amnesty would cover unpaid taxes between 1995 to 2003. For individual taxpayers, the government is still undecided.

"I think the current situation is not appropriate for granting such an amnesty because of the country's corrupt and inefficient tax administration. It will only benefit bad businessmen," said the source.

The tax amnesty plan is one of the administration's top priorities, initiated by Coordinating Minister for the Economy Aburizal Bakrie, who is a former chairman of the Indonesian Chamber of Commerce and Industry (Kadin).

Kadin, the country's most powerful business lobby group, has been promoting the idea of a tax amnesty for the past two years as part of its comprehensive tax reform proposal that it submitted to the government.

The previous administration rejected the proposal over concerns that recalcitrant taxpayers and corrupt officials would abuse the facility, exacerbated by a lack of transparency and weak law enforcement.

Another concern is that it may discourage honest taxpayers in continuing to pay their taxes, in the hope that they too would be granted such a facility sometime in the future.

Director General of Taxation Hadi Purnomo is known to be among those who reject the plan, arguing that the current lack of transparency in the tax system may lead to abuse of such a facility.

The Tax Office is the nation's most important source of revenue, with the government seeking to ensure fiscal sustainability and reduce its dependency on foreign loans.





News Search/Filter
Transaction Rates
19 Sep 18
Buy
Sell
AED1
3,923.78
3,923.78
AFN1
191.22
191.22
ALL1
132.86
132.86
AMD1
29.75
29.75
ANG1
7,814.78
7,814.78
AOA1
50.43
50.43
ARS1
362.50
362.50
AUD1
10,412.55
10,412.55
AWG1
8,000.41
8,000.41
AZN1
8,465.65
8,465.65
BAM1
8,612.62
8,612.62
BBD1
7,206.38
7,206.38
BDT1
171.79
171.79
BGN1
8,606.69
8,606.69
BHD1
38,220.14
38,220.14
BIF1
8.12
8.12
BMD1
14,412.77
14,412.77
BND1
9,539.47
9,539.47
BOB1
2,086.56
2,086.56
BRL1
3,464.53
3,464.53
BSD1
14,412.77
14,412.77
BTC1
91,283,053
91,283,053
BTN1
198.40
198.40
BWP1
1,321.97
1,321.97
BYN1
6,813.93
6,813.93
BZD1
7,173.18
7,173.18
CAD1
11,109.98
11,109.98
CDF1
8.78
8.78
CHF1
14,954.11
14,954.11
CLF1
616,457.50
616,457.50
CLP1
21.07
21.07
CNH1
2,100.74
2,100.74
CNY1
2,100.31
2,100.31
COP1
4.77
4.77
CRC1
24.94
24.94
CUC1
14,412.77
14,412.77
CUP1
565.20
565.20
CVE1
152.55
152.55
CZK1
661.85
661.85
DJF1
80.72
80.72
DKK1
2,256.03
2,256.03
DOP1
288.44
288.44
DZD1
122.13
122.13
EGP1
804.66
804.66
ERN1
961.03
961.03
ETB1
520.44
520.44
EUR1
16,829.80
16,829.80
FJD1
6,798.31
6,798.31
FKP1
18,977.31
18,977.31
GBP1
18,977.31
18,977.31
GEL1
5,890.00
5,890.00
GGP1
18,977.31
18,977.31
GHS1
3,021.86
3,021.86
GIP1
18,977.31
18,977.31
GMD1
296.25
296.25
GNF1
1.59
1.59
GTQ1
1,882.87
1,882.87
GYD1
68.96
68.96
HKD1
1,837.43
1,837.43
HNL1
600.05
600.05
HRK1
2,265.55
2,265.55
HTG1
207.72
207.72
HUF1
51.96
51.96
IDR1
1.00
1.00
ILS1
4,014.35
4,014.35
IMP1
18,977.31
18,977.31
INR1
197.83
197.83
IQD1
12.09
12.09
IRR1
0.33
0.33
ISK1
131.46
131.46
JEP1
18,977.31
18,977.31
JMD1
106.05
106.05
JOD1
20,313.90
20,313.90
JPY1
128.36
128.36
KES1
142.84
142.84
KGS1
211.52
211.52
KHR1
3.51
3.51
KMF1
34.21
34.21
KPW1
16.01
16.01
KRW1
12.84
12.84
KWD1
47,578.38
47,578.38
KYD1
17,301.62
17,301.62
KZT1
39.27
39.27
LAK1
1.69
1.69
LBP1
9.52
9.52
LKR1
87.17
87.17
LRD1
90.13
90.13
LSL1
968.25
968.25
LYD1
10,411.78
10,411.78
MAD1
1,534.80
1,534.80
MDL1
856.69
856.69
MGA1
4.22
4.22
MKD1
273.36
273.36
MMK1
9.23
9.23
MNT1
5.90
5.90
MOP1
1,784.55
1,784.55
MRO1
40.31
40.31
MRU1
402.59
402.59
MUR1
419.58
419.58
MVR1
935.89
935.89
MWK1
19.81
19.81
MXN1
766.51
766.51
MYR1
3,479.24
3,479.24
MZN1
237.59
237.59
NAD1
968.25
968.25
NGN1
39.75
39.75
NIO1
449.51
449.51
NOK1
1,767.47
1,767.47
NPR1
124.00
124.00
NZD1
9,493.62
9,493.62
OMR1
37,430.33
37,430.33
PAB1
14,412.77
14,412.77
PEN1
4,360.47
4,360.47
PGK1
4,337.72
4,337.72
PHP1
266.56
266.56
PKR1
116.88
116.88
PLN1
3,924.82
3,924.82
PYG1
2.46
2.46
QAR1
3,958.44
3,958.44
RON1
3,623.13
3,623.13
RSD1
142.27
142.27
RUB1
213.93
213.93
RWF1
16.47
16.47
SAR1
3,843.04
3,843.04
SBD1
1,826.92
1,826.92
SCR1
1,059.40
1,059.40
SDG1
800.99
800.99
SEK1
1,618.75
1,618.75
SGD1
10,520.60
10,520.60
SHP1
18,977.31
18,977.31
SLL1
1.71
1.71
SOS1
24.93
24.93
SRD1
1,932.52
1,932.52
SSP1
110.64
110.64
STD1
0.68
0.68
STN1
696.26
696.26
SVC1
1,647.71
1,647.71
SYP1
27.98
27.98
SZL1
967.73
967.73
THB1
442.65
442.65
TJS1
1,529.79
1,529.79
TMT1
4,106.22
4,106.22
TND1
5,187.43
5,187.43
TOP1
6,237.84
6,237.84
TRY1
2,252.29
2,252.29
TTD1
2,139.16
2,139.16
TWD1
468.97
468.97
TZS1
6.31
6.31
UAH1
512.08
512.08
UGX1
3.77
3.77
USD1
14,412.77
14,412.77
UYU1
434.44
434.44
UZS1
1.79
1.79
VEF1
0.05
0.05
VND1
0.62
0.62
VUV1
132.83
132.83
WST1
5,567.93
5,567.93
XAF1
25.65
25.65
XAG1
204,300.46
204,300.46
XAU1
17,289,799.16
17,289,799.16
XCD1
5,333.02
5,333.02
XDR1
20,209.56
20,209.56
XOF1
25.65
25.65
XPD1
14,605,570.10
14,605,570.10
XPF1
141.03
141.03
XPT1
11,746,354.18
11,746,354.18
YER1
57.58
57.58
ZAR1
968.98
968.98
ZMW1
1,325.82
1,325.82
ZWL1
44.71
44.71
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services