Quick tax refunds promised

Quick tax refunds promised

JAKARTA (JP): The government promised yesterday to pay a compensation of two percent interest per month if it failed to refund over-payments of tax within 30 days -- calculated after the tax office receives a refund request.

An expert advisor to the Minister of Finance on state budget affairs, Mansury, said in a one-day seminar on tax that the promise was in line with the amendments of tax laws effected early this month.

He said that in return, a taxpayer is required to pay a penalty of two percent interest per month if the amount of their payment is less than it should be.

The deadline for a taxpayer to settle the tax difference is set at seven days after they receive the demand from the tax office, he said.

He said the government is committed to limiting the period of its tax payment examinations to within a maximum of 24 months after the taxable year, far shorter than five years in the past.

Mansury said the government will take strict measures against government officials involved in irregularities, with sanctions including six months imprisonment and a fine of Rp 1 million (US$454).

The government has so far issued 47 new regulations, to support the implementation of the new tax laws, to amend the old ones of 1984. The new tax ruling went into effect on Jan. 1 this year. (fhp)