Hotel Sahid Jaya faces seizure over tax arrears

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)