Tax-evading premises face closure: Wahab

Tax-evading premises face closure: Wahab

JAKARTA (JP): The City Revenue Agency has threatened to close
down hotels, restaurants and nightspots which have failed to pay
taxes, an official said yesterday.

The agency's head, Wahab Rachmatsjah, said the threat was
aimed at forcing owners of the establishments to pay their taxes.

The head of City Council Commission C for financial affairs,
Amarullah Asbah, said earlier that the total amount of taxes due
from 136 hotels and restaurants and 96 nightspots between 1993
and 1997 exceeded Rp 23.2 billion (US$6.02 million at current
exchange rate).

The figures were obtained by Amarullah from a special team in
charge of improving city revenue collection.

Wahab, however, refuted the figures, saying there were unpaid
taxes but the amount was not that high.

"Moreover, some of the taxpayers have already paid their taxes
and others have gone bankrupt," he said.

He said the number of tax evaders in last four years was 422
nightspots, restaurants and hotels, with total tax dues amounting
to about Rp 10 billion, of which Rp 4 billion was owed by
nightspots and about Rp 6 billion by restaurants and hotels.

Wahab explained that before closing down the hotels,
restaurants and nightspots, the agency would first send their
owners warning notifications. If they then failed to pay within
14 days, the agency would give them a final notice.

He said that after being closed down, the establishments'
properties would be confiscated and auctioned by the state-owned
Auction Office.

Wahab said this procedure was based on the 1997 Law on Tax
Collection and other city regulations.

Commenting on the agency's plan to take stern action against
taxpayers who failed to meet their obligations, Amarullah told
The Jakarta Post yesterday that he fully agreed with the
procedure.

"It's time for the city to take a stern move in tax
collection. I don't believe that any of the businesses do not
gain profits. Every weekend, those places are crowded with
customers.

"However, the city administration must be careful in listing
the companies whose owners have not paid taxes. If the agency's
accusation (of not paying taxes) is not true, it'll damage both
the city's and company's reputation.

"So, don't be sloppy. The officials must stick to the rules.
Don't be easily tempted by owners' lucrative offers to avoid tax
payments," he said. (07/05)