Thu, 07 Dec 2000

Soeharto and tax evasion

It's said the President has instructed the director of taxation to investigate Soeharto for tax evasion. Such a policy can be imposed on any corruptor. How?

Information regarding a taxpayer's assets is submitted to the tax office. Information on the assets of a taxpayer who is suspected of having evaded taxes can be also be sought from countries that have a tax treaty with Indonesia.

If there is a difference in the actual value of the assets and the value of the assets declared, besides imposing an income tax on the difference, the guilty party may be slapped with a maximum fine of 400 percent the value of the unpaid taxes and sentenced to a maximum of three years in prison.

Set up a national state team through a presidential decree to assist and supervise the tax officers, and remunerate the team well to reduce the risk of corruption. If no claim is made by the directorate of tax, its right to investigate and collect taxes will expire within 10 years. So, there is still time to penalize people who have evaded paying taxes in the 1990s.

SUHARSONO HADIKUSUMO

Jakarta