Two men charged with falsifying tax invoice

Two men charged with falsifying tax invoice

JAKARTA (JP): A prosecutor brought two men to court yesterday charging them with embezzling more than Rp 58 billion in state funds by using counterfeit value-added tax invoices to obtain tax refunds over a period of three years.

Prosecutor R. Moekiat told the Central Jakarta District Court that Baharuddin Umar and Tonny Effendy together with two others had counterfeited value-added tax invoices to get tax refunds.

"Between 1993 and 1995 the four suspects sold some 12,500 counterfeit VAT invoices worth Rp 58.3 billion in tax refunds," Moekiat said.

The counterfeited invoices were sold at 30 percent of their face value.

The two other accomplices, Hartono and Raden Ignatius Suarisman have been tried separately at the Central Jakarta District Court since last month.

Counterfeit

The four suspects are being charged with masterminding the establishment of 11 firms which conspired to counterfeit and sell value-added tax invoices. The conspiracy later spread to include 20 other companies as the demand for such invoices increased.

Spouses, relatives and children of the suspects were appointed to various positions at these new companies. They were paid between Rp 500,000 and Rp 2,000,000 a month.

Companies which pay the 10 percent value added tax on goods for exports are entitled to get tax refunds from the local tax offices but the refunds should be made on the basis of VAT invoices.

Defense lawyers of Hartono and Ignatius, however, objected to prosecutor's indictment, arguing that the case was legally defect and could not be tried as a criminal case.

A judge's ruling over the objection will be announced next Tuesday. (14)