Hotel Sahid Jaya faces seizure over tax arrears

JAKARTA (JP): The city administration threatened on Monday to seize Hotel Sahid Jaya for failing to repay its tax arrears amounting to Rp 5 billion (US$454,545).

City Revenue Agency chief Deden Supriadi said, before a meeting with Governor Sutiyoso, that he had sent three warrant letters to the five-star hotel management, but all had been left unheeded.

Deden said the hotel, situated on Jl. Sudirman in Central Jakarta, owed tax arrears it had accrued since 1997.

Sutiyoso repeated the warning and promised tough measures against the hotel's management.

"If the hotel remains stubborn and does not pay its taxes we will report it to the police for tax evasion," the governor told reporters.

Deden said the hotel might have to pay double the amount due to the accumulated interest imposed on the unpaid tax.

None of Hotel Sahid Jaya's executives contacted would comment on the matter.

Besides Hotel Sahid Jaya, Hotel Mulia Senayan, also in Central Jakarta, was among other hotels in the city which have yet to settle their tax payments, Deden said.

A member of Hotel Mulia Senayan's public relations department, Arum, denied allegations that the hotel had evaded tax.

"We have received an annual award from the Central Jakarta mayoralty administration for being a good tax-payer," Arum said.

But later she admitted that the hotel, located on Jl. Asia Afrika, had yet to pay some of its tax.

"Concerning the amount, that is Mulia Group's business," she added, referring to a holding company owned by tycoon Djoko Candra.

Executives of the City chapter of the Indonesian Hotel and Restaurant Association (PHRI) earlier refused to comment on hotels which have failed to pay their taxes.

"Ask ibu Yanti," one of the PHRI executives said, referring to the association's city chairwoman, Yanti Sukamdani, who is also president of Sahid Hotel.

Earlier in the day, chairman of City Council Commission C for Budget and Financial Affairs Amarullah Asbah revealed that tax arrears from hotels had reached Rp 20 billion this year.

Amarullah suggested the city administration proceed with its plan to report Hotel Sahid management to police over alleged tax swindle.

Asked whether certain city officials had hampered tax collection, Amarullah refused to comment.

He said the hotel management might defy the tax claim on purpose, hoping that the city revenue agency would roll it over when the amount was too much for the hotel to bear.

"The agency should have the courage to force the hotel management to pay the tax," Amarullah said.

In the 2001 budget, the city administration expected to secure Rp 224 billion from hotel taxes and Rp 116 billion from restaurant taxes. (jun)