Taxation collection methods

Taxation collection methods

I have for a long time read "Your Letters" with varying
degrees of interest. Lately three letters got me thinking about
how much damage corruption, collusion and nepotism (KKN) have
done to business in the past, and how much it will effect
Indonesia's ability to climb out of the current economic crisis.

The first two letters were in the Nov. 23, 1999, edition of
your paper. One being from J.S. Uppal, who seemed to imply that
the method to get Indonesia out of the current monetary crisis
was to tighten up taxation collection methods.

I ask why is it that when so many business have suffered for
almost two years the effects of a major economic depression, is
it not counterproductive to heap further tax burdens on the
companies and people who wish to continue their operations?. In
many cases these businesses are hard-hit economically, some
becoming bankrupt and others just simply closing their doors.

Wouldn't it be more advisable to give businesses, some tax
incentives to encourage investment, and so kick start the
economy? If J.S. Uppal's view were to be adopted by the
government, many businesses would be taxed out of existence, thus
increasing the number of unemployed people.

In other edition there was a letter from Helina, whose views
on the difficulties that Gus Dur will have in trying to rid the
government of KKN I agree with. I can only sympathize with the
problems that our President must be facing in trying to solve
these problems. However what got me thinking is that these two
letters were printed next to each other. Over the 12 years during
which I have conducted business in Indonesia, I have witnessed
many instances of KKN on the part of the taxation departments'
"public servants", whereby taxes were deemed as fines and
interest applied. Often these costs could be negotiated away for
a percentage cash payment. If these monies had gone into the
state coffers it would have greatly improved the government's
ability to fight the economic problems.

The third letter was in the Nov. 25, 1999, edition from our
favorite writer Donna K. Woodward, whose many letters about KKN
within the manpower and immigration departments we would tend to
agree with. What I think Donna, is maybe we should ask the editor
to set up a "Poll" in which all the Post readers would be invited
to vote for their most KKN riddled-figure/department each month
and then "awards" and "accreditation" could be given.

LEO LEAROYD

Pelabuhan Ratu, West Java