Ministers' absence enrages court

Ministers' absence enrages court

Rendi A. Witular, Jakarta

The Constitution Court's panel of judges voiced anger on
Tuesday over the absence of two ministers and several legislators
in a hearing of a landmark case that probes the legality of tax
tribunal.

The Court's chief judge Jimly Asshiddiqie said that the
absence of the ministers and legislators indicated that they had
no respect to both the court and the Constitution.

The Court expected Minister of Finance Boediono and Minister
of Justice and Human Rights Yusril Ihza Mahendra and several
legislators who took part in deliberating the tax trinbual law to
give testimonies during the examination of a petition filed by a
local businessman who felt disadvantaged by the existence of the
Tax Tribunal.

However, only Maurin Sitorus, legal division head at the
Ministry of Finance, and Djangkung Soedjarwadi, senior expert
staff at the Directorate General of Taxation, were present at the
hearing, representing the government.

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

"We are talking about upholding the constitution here and
their absence can be considered as a contempt of court. I want
you to tell your boss not to underestimate us and the case,"
clearly infuriated Jimly told Maurin and Djangkung.

Under the existing law, all sessions at the Court should be
attended by the President, who could be represented by ministers,
or the Speaker of the House of Representatives, who could be
represented by legislators.

The petition being probed by the Court was filed by health
equipment supplier PT Apota Wibawa Pratama, who claimed the
existence of the Tax Tribunal was against the 1945 Constitution
and had been abused by tax officials to extort taxpayers.

According to Apota director B.Q. Vega, the Constitution only
recognizes five courts -- the criminal and civil courts (public
courts), religious courts, military courts, administrative courts
and the Constitutional Court. Since the Tax Tribunal was not
among the five, the legal standing of rulings handed down by the
tribunal was questionable.

Should the Constitutional Court rule in favor of the
businessman and declare the Tax Tribunal Law No. 14/2002 as
invalid, the government should abolish the tax tribunal, which
was established last year.

Commenting on the absence of Boediono, Yusril and several
legislators, Vega said: "It was a clear sign of disrespect by the
officials over the case and the existence of the court."

The Ministry of Finance officials said that Boediono could not
come because he had yet to receive a letter from the president
assigning him to attend the hearing.

"We don't have any 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

How Tax Tribunal becomes of extortion tool

-- Tax officials inflate the amount of taxes owed by a company or
an individual to an unrealistic level, sparking protests from
taxpayers.
-- A tax official will contact the taxpayer to meet in certain
place, usually for lunch, to discuss the problem.
-- The tax official will offer solutions: either the taxpayer pay
25 percent of his or her tax bill to the tax offical under the
table or file the case to the Tax Tribunal.
-- Taxpayers are normally reluctant to file such a case with the
tax tribunal given a clause in the tax tribunal law requiring
taxpayers to pay 50 percent of their tax arrears prior to the
hearing of their case at the Tax Tribunal.
-- Taxpayers that are unable to meet the requirement have no
alternative but seeking a compromise with tax officials,
including paying them the bribes.