Sat, 15 Jul 2000

Tax lawyer's practice

There has since long ago been a regulation stipulating that state enterprises (BUMN) wishing to settle their tax problems with the Tax Services Office (KPP) are forbidden to use tax consultant services. The goal is to minimize those enterprises' expenditures. In addition, the prohibition also prevents squandering money such as paying "success fees" amounting to some 20 percent for getting tax refunds.

Normally the "success fee" is disbursed and divided among the tax officer, the BUMN official and the tax consultant. But I have heard for a long time that many BUMNs have a clever trick of delegating authority to tax lawyers for settlement of their tax problems including tax refunds.

I wonder why they are accepted by the KPP tax officers. How is it that they are willing to serve the tax lawyers? Is this a new method to divide money? How easy and convenient! Even a tax consultant must do an exam and holds tax certification A, B and C. What about the tax lawyers?

Stranger still, when the BUMN accounting system is audited by the Development and Financial Control Board (BPKP), the fee payment or the deduction from the tax refund to the tax lawyer "is not checked" by the BPKP examiner. There seems to a dividing of money, too, with the BPKP officer.

Is that kind of problem already known by the Directorate General of Taxes and the Head of BPKP? Please exert better supervision so as not to cause jealousy to ordinary tax consultants.

SUHARSONO HADIKUSUMO

Jakarta