City officials accused of colluding with tax evaders

City officials accused of colluding with tax evaders

Bambang Nurbianto, The Jakarta Post, Jakarta

The Jakarta administration accused on Thursday officials at the
City Revenue Agency of colluding with the managements of the
Sahid Jaya Hotel and the Gran Mahakam Hotel, both of which have
failed to pay their tax arrears.

"The hotels have not paid their taxes for about three years,
but why has the agency not taken any action against them ...
there must be collusion," City Hall spokesman Ahyat M. Awe said.

However, Ahyat fell short of saying the accused officials
would be dismissed or detained for questioning over their alleged
involvement in the collusion.

Later on Thursday, Governor Sutiyoso summoned the head of the
City Revenue Agency, Deden Supriadi, in connection with the tax
arrears of the Sahid Jaya and the Gran Mahakam, as well as other
hotels and restaurants.

Sutiyoso said he would not rush to judgment on the alleged
involvement of Deden and his subordinates in colluding with the
hotels.

"I don't know (if there was collusion). What I know from the
media is that they (the hotels) only made promises (to pay their
taxes) but did not meet these promises," he said.

The governor said he had not received an official report from
the City Revenue Agency on tax arrears, which amount to Rp 50
billion in total.

Ahyat said this amount included more than Rp 18 billion owed
by the Sahid Jaya. He declined to reveal the amount owed by the
Gran Mahakam and other hotels.

Speaking after Thursday's meeting with Sutiyoso, Deden denied
any collusion by his office, and promised to provide details of
the tax arrears at a press conference on Friday.

He said his agency had issued three warning letters to the
Sahid Jaya and the Gran Mahakam, but the letters were ignored. He
added that another letter would be sent later this month.

If no action is taken by the hotels within 21 days after the
letters are issued, they will be given another 14 days to respond
before the city administration moves to seize their assets, he
said.

The city administration has set a tax revenue target of Rp 627
billion from hotels and restaurants across Jakarta this year. The
city collected Rp 520 billion in taxes from the same sector in
2002.