Tax Dodgers Including Foreign Nationals Jailed

[Vanhelsing]

The Indonesian government is taking aggressive action to obtain unpaid taxes with more than 50 people including foreign nationals being imprisoned until they pay up. With one of the lowest tax ratios in the region, Indonesia is striving to improve its percentage from 11% to 13-14% by 2021.

In the first 10 months of the year, Indonesia temporarily jailed 53 people for failing to pay arrears, the Tax Directorate-General’s office said, without naming the people. Forty-five of them have since been released after paying up 230 billion rupiah, while eight remain behind bars, owing a collective 41 billion rupiah. Authorities are looking to detain another 23 people who owe a total of 1.8 trillion rupiah.

One of the people jailed in July was a recalcitrant taxpayer with shares in a company that mines gold and silver, according to the tax office. He was held “hostage” for 16 hours at a prison in central Jakarta that also houses inmates on death row. Identified only as EB, the person paid 2.4 billion rupiah in unpaid taxes before leaving the Salemba jail,

For Indrawati, it’s time for action. She’s under pressure to boost revenue to enable President Joko Widodo to meet his infrastructure spending goals, while keeping the budget deficit under a legally mandated cap of 3 percent of GDP.

https://www.bloomberg.com/news/arti...ken-hostage-in-indonesia-to-meet-budget-goals

 

[Ruserious]

I think this is only about time and a good thing for Indonesia but I wish (or hope?) that the tax authority don't just try to use grey area rules to exploit. I have heard quite a few stories of companies and individuals recently who have to pay large sums in fines (actual official fines) on tax rules that are obscure and difficult to fully understand. These are companies and individuals who were already paying a lot of tax but were probably easier targets than searching for the complete tax dodgers.

 

[snpark]

Well even Alexis hotel pays their tax too hahaha but they only want halal tax now

 

[HeikkiL]

Well even Alexis hotel pays their tax too hahaha but they only want halal tax now

And the latest (?) of Unos's bright ideas was introduction of "halal tourism" and "halal hotels"...

 

[Anglian]

And Halal money

And the latest (?) of Unos's bright ideas was introduction of "halal tourism" and "halal hotels"...

 

[ChrisTex]

As long as their tax offices don't say you will be approved and then the next day call asking for a bribe, no problem.

 

[mauricio]

And the latest (?) of Unos's bright ideas was introduction of "halal tourism" and "halal hotels"...

"Bright" ideas??? More like "backward" ideas. Even Saudi Arabia is leaving behind the past, they are planning to build a city to rival Dubai (where you can easily buy alcohol and pork).

 

[mauricio]

I think this is only about time and a good thing for Indonesia but I wish (or hope?) that the tax authority don't just try to use grey area rules to exploit. I have heard quite a few stories of companies and individuals recently who have to pay large sums in fines (actual official fines) on tax rules that are obscure and difficult to fully understand. These are companies and individuals who were already paying a lot of tax but were probably easier targets than searching for the complete tax dodgers.

The tax authority is "hunting in the zoo" and the easiest prey are those "weak and vulnerable" (small & medium-sized businesses), including many who joined the tax amnesty program (contrary to earlier claims that they will not be subject to tax audit).

 

[Smallworld]

The tax authority is "hunting in the zoo" and the easiest prey are those "weak and vulnerable" (small & medium-sized businesses), including many who joined the tax amnesty program (contrary to earlier claims that they will not be subject to tax audit).

Some people here in Indonesia think that reporting some part of wealth will make them looking clean that is why tax office reserved the right to audit or should I say verify given information to make sure you are not hiding anything and if you do.... there will be penalty. How else do you think they (tax office) can confirm you have reported all correct data and paid correct tax? Notice we are talking here about 45 people with 230 M rp.

I also doubt they will scrutinize companies data from XX years till amnesty period. They will do it as a sample eg. please provide me Q1 sample for financial statements from 1 JAN 1999. It is only if you failed your sampling then they will "unleash" the whole tax inspection team.

 

[Zavia]

I think this is only about time and a good thing for Indonesia but I wish (or hope?) that the tax authority don't just try to use grey area rules to exploit. I have heard quite a few stories of companies and individuals recently who have to pay large sums in fines (actual official fines) on tax rules that are obscure and difficult to fully understand. These are companies and individuals who were already paying a lot of tax but were probably easier targets than searching for the complete tax dodgers.

A few months ago, 2 separate LCL shipment from was going thru Jalur Merah. Paid tax as per declared.

A few days later, we get a reply we under declared and have to pay a fine. ~_^?
The first one, the said our windscreen sealants (good stuff, ahem) was under declared by (after some maths) 1.1%. We were taxed on the 1.1%(1.1%*7.5%) and levied a 5+ juta fine. Total bill was still below 6mil. WTF? Waste of time. HOW CAN YOU BE SO ACCURATE TO 1.1%??? They couldn't answer, said they had some book of prices no one can see that they reference.

A few days after the first one, the second LCL, high end "sealant guns", was deemed to be some 10% under market. Fine was 2+ or 3 juta. Total bill was 5 mil. I was pissed off at this point, as this ones was over the normal retail price. No way its under declared. AND the fine was lower even tho it was a higher "tax evaded" amount.

tax rules that are obscure and difficult to fully understand
Very true. Not that I didn't try.
Just sharing/ranting.