Thu, 08 May 2003

Unfair treatment by tax office

Toward the end of 1997, my company was audited by the Palmerah KPP (tax service office) for the years 1995 and 1996. We submitted all the necessary documentation to the tax office for audit.

In April 1998, the documents were returned and everything was accepted, except for a few minor discrepancies. In May 1998, my office was burned to ashes in the widespread May riots. We reported our devastating loss to the police, the tax office, our customers, etc.

The company ceased to operate after that, and, with a very heavy heart, we had to part with our loyal workers. In the following months we were asked by the tax office for additional information, to which we replied that we simply could not provide any more, due to the tragic event.

In August 1998, the tax office came to a decision, whereby we had to pay taxes based on the outflow of funds calculated from our bank statement. They simply made the assumption that all outflowing funds equated to our sales figures, totaled them up and imposed a 10 percent tax on them. We tried in vain to explain our problem and dilemma.

They referred the matter to the regional office, which also turned a deaf ear to our pleas. They told us to take the case to the tax court (BPSP). In order for the hearing to proceed, we were required to pay in full the whole amount, a sum we simply didn't have. The company was on the brink of bankruptcy and yet we were told to pay the full tax amount in advance before the court could proceed. Because of this our plea was dismissed. The last option available to us is to request a revaluation (PK).

Now the tax office wants to confiscate and auction off my office. Is this the way the tax office operates, to ensure it meets its target revenue?

All these years I have diligently paid my taxes and have never, for an instant, tried to evade any tax. Because of my misfortune, I am hunted and condemned like a cursed criminal.

Where have I gone wrong? Where is the sense of justice? I have lost my business, my livelihood and my faithful workers, and the tax office still wants to take away my sole possession in an unjust manner. I would like to appeal to the tax office to do me justice and do the right thing.

WIDODO, Jakarta