City threatens to seize Sahid Jaya, Mahakam
City threatens to seize Sahid Jaya, Mahakam
Bambang Nurbianto, The Jakarta Post, Jakarta
The city administration threatened on Wednesday to confiscate
Hotel Sahid, Central Jakarta, and Hotel Gran Mahakam, South
Jakarta, for failure to pay their tax arrears.
The two are among many hotels and restaurants in the city that
have not paid their taxes since 1987, head of the City Revenue
Agency Deden Supriadi told the media after attending a City
Council plenary session on Wednesday.
The cumulative tax arrears of all offending hotels and
restaurants for the period 1987 to 2002 amounted to Rp 50
billion, he said.
He refused to reveal the identity of the other tax evaders,
but promised to issue the list as soon as possible.
He said the administration would take strict measures against
tax evaders, including the possibility of confiscation. Deden,
however, refused to set a deadline by which the tax arrears
should be paid.
"We have sent written warnings several times, but many have
ignored them," Deden said.
This is not the first time that the city administration has
threatened to seize the assets of tax evaders. Similar threats
were made in recent years, but in the end were not carried out.
On Wednesday, Sutiyoso submitted to the City Council three
drafts of bylaws, including one on entertainment, hotel and
restaurant taxes.
The city administration plans to collect Rp 627 billion in
hotel and restaurant tax this year. Last year it collected Rp 520
billion, while the target was Rp 490 million.
Article 15, paragraph 2 of bylaw no. 9/1998 on hotel and
restaurant taxes says the taxpayers concerned should pay 2
percent monthly interest on the total tax arrears that have not
been paid by hotel and restaurant managements.
Paragraph 3 of the article adds that the city administration
shall impose a sanction of up to 100 percent of the total tax
arrears if taxpayers fail to fulfill their obligations within
five years.
Article 39 stipulates that tax evaders could be penalized with
a jail sentence of up to two years or pay a fine four times the
total of their arrears if they deliberately refuse to return the
tax form.