Tax consultants deny involvement in tax scam

JAKARTA (JP): The association of tax consultants yesterday denied that its members had helped taxpayers manipulate tax refunds.

"The man jailed by the state court in Tangerang, West Java, is not a member of the association," Ali Harris Nasution, a deputy chairman of the Association of Indonesian Tax Consultants (IKPI), commented here yesterday regarding the tax manipulation by Priyanto Dwisaksono, who was sentenced to three years and six months in jail for manipulating tax refunds.

Priyanto was charged with colluding with the owner of a company in Tangerang to manipulate value-added tax (VAT) refunds, causing a loss to the state of around Rp 2.4 billion (US$1.14 million). The company's owner was jailed for three years and four months.

He said that many people pawn themselves off as tax consultants to enable them to provide financial services to both institutional and individual taxpayers.

"They even collude with taxpayers to dodge tax payments or manipulate tax rebates," he said, adding, however, that his association could do nothing but appeal to those unregistered tax consultants to join the organization.

Monitoring

"If they join the organization, their operations can be monitored easily," said Harris.

Asked about the possibility of association members helping their clients to evade tax payments, Tjoetjoe Alihartono, also a deputy chairman of the association, said that the chance was very small.

"The association has a code of business ethics," he reminded.

Tjoetjoe said association members would not only face severe administrative sanctions from both the association and the government, but would also face criminal charges if they break the tax law.

Financial experts are required to apply to the Minister of Finance for licenses to operate as tax consultants, and are then classified into three groups according to skill levels. The tax consultants of Category A are, for example, allowed only to provide services to individuals, Category B to individuals and non-business institutions and Category C to all individual and institutional taxpayers.

Registered tax consultants are required to join the association. (hen)