Ministers' absence enrages court

Ministers' absence enrages court

Rendi A. Witular, Jakarta

Justices of the Constitutional Court voiced their ire on
Tuesday over the absence of two ministers and several legislators
at a hearing of a landmark case on the constitutionality of the
Tax Tribunal.

Court president Jimly Asshiddiqie said the absence of the
ministers and legislators indicated they had no respect for both
the court and the Constitution.

The Court had summoned Minister of Finance Boediono, Minister
of Justice and Human Rights Yusril Ihza Mahendra and several
legislators who had deliberated the Tax Tribunal Law to testify
at the review of a petition filed by a local businessman, who
felt his company had been disadvantaged by the Tax Tribunal.

The ministers did not show and were instead represented at the
hearing by Maurin Sitorus, head of the legal division at the
finance ministry, and Djangkung Soedjarwadi, senior expert at the
Directorate General of Taxation.

"The ministers should not underestimate the case just because
it was filed by a 'little' person.

"We are talking about upholding the Constitution here, and
their absence can be considered contempt of court. I want you to
tell your bosses not to underestimate us and the case," a clearly
infuriated Jimly told the government representatives.

By law, all Court sessions must be attended by the President,
who may be represented by relevant ministers, or the House of
Representatives Speaker, who may be represented by lawmakers.

The petition was filed by health equipment supplier PT Apota
Wibawa Pratama, which claimed the Tax Tribunal's establishment
and existence was contrary to the 1945 Constitution and it had
been abused by tax officials to extort taxpayers.

Apota director BQ Vega said the Constitution recognized only
five courts -- the criminal, civil, religious, military and
administrative courts -- in addition to the Constitutional Court.
Vega argued that since the Tax Tribunal was not among these five,
the legality of rulings handed down by the tribunal was
questionable.

If the Constitutional Court rules in favor of the plaintiff
and declare Tax Tribunal Law No. 14/2002 invalid, the government
would be required to abolish the tribunal, which was established
last year.

Commenting on the absence of Boediono, Yusril and legislators,
Vega said: "It was a clear sign of disrespect by the officials
over the case and the Court as a judicial entity."

The finance ministry officials said Boediono was unable to
come because he had not yet received a presidential letter of
appointment to attend the hearing.

"We have no intention to disrespect the Court, and we take the
case seriously. The minister has not yet received an instruction
from the president to attend the hearing," said Maurin.

The Court adjourned the hearing until further notice.

Eyebox

Extortion via the Tax Tribunal

-- Tax officials inflate the amount of taxes owed by a company or
an individual to an unrealistic level and prompt a protest
-- A tax official contacts the taxpayer to meet at a certain
place, typically for lunch, to discuss the matter
-- Solutions are offered: either pay 25 percent of their tax
statement to the official under the table or file a case with the
Tax Tribunal
-- Taxpayers are normally reluctant to file a case with the
tribunal, given a clause in the Tax Tribunal Law that requires
taxpayers to pay 50 percent of arrears prior to their hearing
-- Taxpayers who are unable to meet the arrears payment clause
have no alternative but to seek a compromise with officials,
including paying the bribe