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.