Unpaid taxes over last four years exceed Rp 23.2b

Unpaid taxes over last four years exceed Rp 23.2b

JAKARTA (JP): Unpaid taxes from at least 136 hotels and
restaurants and 96 other entertainment spots in Jakarta over the
last four years exceed Rp 23.2 billion (US$8 million),
city councilors said yesterday.

Of the total, Rp 12.2 billion is from the hotels and
restaurants and the remaining Rp 11 billion from the
entertainment centers.

The head of Commission C for financial affairs, Amarullah
Asbah, told reporters the tax evasion figures were obtained from
the special team formed to enhance the city's revenue collection.

Amarullah said the figures were the results of the team's
joint investigation with other related agencies into the
companies and their owners.

"Tax collection is currently being handled by the city's
tourism office and revenue subagencies.

"If they fail to collect the dues, the city administration,
through the head of related agencies, will officially send the
tax defaulters warning notifications and if they still refuse to
pay, the city will impose sanctions," he said.

The councilor's statements, however, were strongly denied by
representatives of some hotels mentioned in the tax evasion list.

Regent Hotel public relations manager Nuni Sutyoko told The
Jakarta Post yesterday that the hotel always paid its taxes to
the city administration on time. "We pay them every month and
never fail to do so," she said.

Mawardi, an accountant at Hotel Horizon, echoed Nuni's
statement. "The amount the hotel pays every month is about Rp 400
million, and we never fail to meet our obligations," she said.

Uraini Umarjadi, a spokeswoman for the Borobudur Hotel, said
that her hotel never failed to pay its taxes.

"We owe nothing to the city administration," she said.

Uraini said that last March the Borobudur was rewarded by the
Central Jakarta Mayoralty for being the fastest taxpayer.

Commission C member Chudlari Sjafi'i Hadzami said Monday that
the entertainment centers that had not paid their taxes, included
pubs, massage parlors and discotheques.

Chudlari also questioned why the city's tourism agency issued
permit extensions to entertainment spots that had not met their
tax obligations.

"The permits of those failing to pay taxes should have been
withheld until they paid the taxes," he said.

"If they don't pay taxes, revoke their permits. That should
teach the owners a lesson," Chudlari said.

Both Amarullah and Chudlari urged the municipality to take
firm action against some officials who gave permits after taking
bribes.

"This kind of collusion practice must be stopped," Amarullah
said.

The largest taxpayers who failed to meet their obligations,
according to the city revenue agency, are Pulau Seribu Marine
Resort (with total dues of Rp 1.7 billion), followed by Happy
Puppy Karaoke (Rp 450 million), Hotel Interhouse (Rp 395
million), New Cleopatra Discotheque and Karaoke (Rp 248 million)
and Pondok Indah swimming pool (Rp 292 million).

Other taxpayers with alleged outstanding tax bills include
Hotel Borobudur (Rp 288 million), Hotel Horison (Rp 76 million),
Regent Hotel (Rp 78 million), Kentucky Fried Chicken on Jl.
Fatmawati in South Jakarta (Rp 150 million) and Hoka-Hoka Bento
in Pondok Indah (Rp 187 million).

The data was gathered by the City Revenue Agency from 1993
until June 1997.

Amarullah said that the owners of the locations must be aware
of their obligations.

"I don't believe any of the above businesses do not make a
profit. Every weekend, they are crowded. They really should try
to pay taxes, because it's their obligation." (07)