Constitutional Court decision on taxation law expected soon

The Jakarta Post ,  Jakarta   |  Thu, 02/28/2008 11:29 AM  |  Business

The Constitutional Court said Wednesday it had sufficient testimony and data to make a decision on a judicial review of the law on general rules and procedures on taxation.

"There is no need for more sessions ... the verdict will be made within the next two to three weeks," Constitutional Court President Jimly Asshiddiqie said.

Earlier this year, the Supreme Audit Agency proposed a judicial review on the tax law, seeking to amend an article that demanded the agency attain permission from the Finance Minister to audit the state's tax revenue.

The agency says the tax law limits its authority and ability to conduct audits on possible misappropriation by tax officials.

Among those opposed to the audit agency's request to amend the law is the Indonesian Chamber of Commerce and Industry, which says if the agency was given more power to audit tax revenue, it would put at risk confidential taxpayer information.

Speaking to reporters after the court session Wednesday, Finance Minister Sri Mulyani said the agency did not need to file a judicial review as her office would support its audits.

"We have never prevented the agency from accessing any information related to taxation."

"That is why I always ask myself, `Do we really need to settle this problem through the Constitutional Court?' We only need to establish a certain procedure related to this matter," Finance Minister Sri Mulyani said.

Wednesday's session was the third, with previous sessions hearing from experts such as tax law expert Gunadi, financial audit experts Satrio Boedihardjo and Soedarjono, and human rights expert Abdul Hakim Garuda Nusantara.

The testimony mainly touched on how to protect the confidentiality of taxpayer information and how to support the audit agency in carrying out its work.

Head of the audit agency's legal directorate, Hendar Ristriawan, said the agency's task was to asses the state's financial management, and that it did not have any interest in scrutinizing taxpayers' personal data

Hendar said, "The agency has a code of ethics that prevents its auditors from revealing taxpayers' personal information." (uwi)

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