Alleged new tax fraud case worth Rp 3.6 trillion uncovered

  Bambang Soesatyo (Antara/Ismar Patrizki)

An alleged new tax fraud case worth Rp 3.6 trillion (US$385 million) has emerged following a report submitted to the House of Representatives working committee on taxation by a taxation official.

One of the committee members, Bambang Soesatyo from the Golkar Party, says the insider was a fourth echelon officer at the tax office.

“The alleged fraud revolves around restitutions paid to the Wilmar International Limited Group,” Bambang said in Jakarta on Tuesday.

Bambang said the business group allegedly conducted fictional transactions among the businesses under it, allegedly fabricated financial reports and arranged bogus transfer pricing to receive the refunds.

“The Wilmar Group received tax reimbursements worth Rp 800 billion in 2007 and Rp 900 billion in 2008. In 2009, the group was about to receive a refund worth Rp 1.9 trillion.”

However, Wilmar Group deems the tax fraud allegation as confusing and illogical.

“The allegation on us is about a tax fraud that had been going on for the last three years. If that was the case, then why hasn’t the taxation office investigated us until now?” Wilmar Business Development Manager Max Ramajaya told The Jakarta Post by phone on Tuesday evening.

Despite the allegation, Max said that Wilmar would not sue Bambang for defamation.

“Pak Bambang is only doing his job to follow up reports submitted to him,” he said.

Bambang further said such a possible fraud could only be executed with the help of high-ranking officials at the taxation office.

Bambang added that the report indicated that numerous high-ranking taxation officials were likely involved in the fraud.

“They are Pontas Pane and Tjiptardjo,” Bambang said.

Pontas Pane is the current intelligence and investigation director of the taxation directorate general, while Tjiptardjo is the current taxation director general.

The alleged fraud itself took place during the leadership period of Darmin Nasution, who is now the interim Bank Indonesia governor.

“Therefore, we are going to address the problem with Pak Darmin at a hearing next Tuesday,” Bambang said.

Darmin has been widely known as a reform icon at the taxation office.