'Comportable' prison to house tax evaders

'Comportable' prison to house tax evaders

Rendi A. Witular, The Jakarta Post, Jakarta

Although the government has provided a special executive-class
cell for recalcitrant tax evaders, spending a night at it will be
an experience they are unlikely to forget.

Rats, blood-sucking mosquitoes and extortion by prison guards
are just a few of the experiences tax evaders serving a temporary
detention have to look forward to.

"This is part of the government's shock therapy to boost
compliance of taxpayers with the tax laws," said Director General
of Taxation Hadi Poernomo in his visit to take a look at the new
cell facilities for tax evaders at the Cipinang Penitentiary in
East Jakarta on Wednesday.

Hadi's visit was part of preparations to implement a new
decree signed last month by the minister of finance and the
minister of justice and human rights that allow tax evaders to be
imprisoned for a maximum of one year without trial.

The new policy was aimed at enforcing the government's rights
in collecting tax, which is badly needed by the cash-strapped
government to finance the state budget.

Based on the joint decree, temporary detention will be imposed
on those evading taxes of over Rp 100 million (US$12,000) owed to
either the central or local governments.

During the visit Hadi explained that the government had
allocated three blocks to temporarily house tax evaders until
they agree to pay their obligations to the state.

Each block consists of between three and five cells measuring
5 meters x 6 meters, with each cell having the capacity to
accommodate up to five inmates. The cells are separated from
those for criminals and drugs abusers.

As for the meals, each tax evader will receive a meal worth Rp
4,500 and 450 grams of rice per day. A typical meal may consist
of a boiled egg, tofu, fried fish and vegetables.

However, all the prison guards said that in terms of
facilities the special cells were considered comfortable compared
to other cells in the penitentiary.

"In the special cells you can bring in your own home theater,
refrigerator, mobile phone, or even gym facilities," said a guard
who refused to be named.

But, as widely reported, to get all the comforts of home,
inmates will have to pay a certain amount of money requested by
the guards which can reach millions of rupiah.

Moreover, tax evaders will also have to pay for their own
"security" during their time in the prison. They will be in
jeopardy, as they may become victims of sodomy, if they fail to
comply with corrupt prison guards.

However, Cipinang chief of security Djoko Mardjo denied that
such practices existed, saying that they were all baseless.

Between the end of 2002 and the second week of June, the tax
office had issued travel bans against 39 tax evaders including
eight expatriates. These 39 tax evaders would likely be the first
to be targeted under the new ruling.

Tax evaders can be imprisoned for six months, a sentence which
can be extended for another six-month period. The tax office will
issue an order to seize and auction the evaders' assets during
their incarceration.

However, the tax office will issue several warnings before
sending tax evaders to prison.

If tax evaders fail to pay their taxes after 37 working days,
the office will send a warning letter to them; 21 days after
that, the office will send a reprimand. If they still show no
goodwill, the office will issue a travel ban.

The tax evaders will be sent to prison if they show no
intention of settling their obligation 21 days after the ban has
been issued.