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)