Timor misses tax deadline: Official

Timor misses tax deadline: Official

JAKARTA (JP): PT Timor Putra Nasional, a controversial
automotive company controlled by the youngest son of former
president Soeharto, missed Friday's deadline to pay Rp 3.09
trillion (US$412 million) in backdated import duties, an official
said.

The director of planning and revenues in the Directorate
General of Customs and Excise, Permana Agung, said on Friday that
Timor had not responded to attempts to collect the money, Antara
reported.

Timor, controlled by Hutomo Mandala Putra, was given until
Dec. 18 to pay import duties which the company was exempt from
paying under special facilities extended by Hutomo's father.

Permana said the company would be served with a letter of
warning and given a further 14 days to settle its dues.

If the money is not paid within 14 days, collection will be
entrusted to the State Receivership Agency.

Companies referred to the State Receivership Agency usually
end up in liquidation.

In 1996, Timor Putra was assigned by then president Soeharto
to develop a national car and was granted exemptions from import
duties and tax exemptions to import assembled sedans manufactured
by South Korea's Kia Motor Co.

The exemptions were granted on condition that the company set
up an assembly plant in Indonesia in the second year of operation
and gradually increase the use of locally-manufactured
components.

The company failed to fulfill the terms of the agreement and
is now required to pay backdated tax and import duties on the
40,960 cars it has so far imported.

The Attorney General's Office is currently investigating
whether Soeharto acquired huge wealth through the abuse of power
while he was in office. The Timor car is among projects being
investigated on these grounds. (das)