Government plans to set up tax ombudsman
Government plans to set up tax ombudsman
Rendi A. Witular, The Jakarta Post, Jakarta
Despite initial resistance from the directorate of taxation, the Ministry of Finance is determined to establish an independent ombudsman to help eradicate corruption and ensure transparent tax collection.
A government source told The Jakarta Post on Monday that Minister of Finance Boediono had agreed to the formation of an ombudsman's office, which will comprise clean and independent professionals and experts.
"The commission is not related to the National Ombudsman Commission led by Anton Sujata. This is a new independent commission specializing in curbing corruption and collusion at the directorate of taxation," said the source.
He referred to the social and political watchdog formed in 2000 with the purpose of ensuring the upholding of the law by the government, courts and law enforcers.
According to the source, the ministry agreed to appoint an ombudsman following pressure from the International Monetary Fund as part of the programs needed to reform the country's tax offices which has for decades been tainted by corruption.
The ombudsman will have several substantial tasks, including ensuring the implementation of good governance by the directorate of taxation.
Another task is to mediate disputes between taxpayers and tax officials before the cases are brought to the tax court, and to follow up complaints filed by taxpayers on any misconduct made by tax officials.
Currently, the ministry is in the final stages of discussing working procedures and personnel for the ombudsman's office.
The source said taxation director general Hadi Purnomo initially objected to the ombudsman idea but Boediono's insistence gave him no choice but to accept it.
"The directorate of taxation rejected the idea as they are afraid their 'sins' will be unveiled to the public. This has been shown by their indifference towards the idea," said the source.
The most daunting task for the ministry at present is to choose an ombudsman, who should be a person of integrity who is acceptable not only to the government but also to business.
Nevertheless, the source said, the ministry was optimistic it would complete the selection by next week, after receiving input from the private sector, the IMF and the directorate of taxation.
Meanwhile, taxation directorate spokesman Nono Hanafie dismissed the notion that the directorate had refused the idea of an ombudsman.
"We welcome the commission supervising us. But currently I can not comment much on the plan," he said.
Taxation expert Revrisond Baswir of the University of Gadjah Mada said the tax ombudsman could, at least, make tax officials no longer feel secure continuing their corrupt activities.
"This is a logical step to prevent taxpayers from evading their tax obligations by conspiring with tax officials," said Revrisond.
However, Revrisond pointed out that the position of the chairman was very crucial, and should be filled by an independent and credible person.
Concerning the tasks of the ombudsman, Revrisond said that the agency should not only rely on reports from the public but should also be pro-active in conducting investigations.