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Tax office allays concerns
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Taxpayers consult with tax office staff as they apply for the tax amnesty at East Java Tax Office II in Sidoarjo, East Java, on Aug. 8. (Antara Photo/Umarul Faruq)
T
he Finance Ministry’s Taxation Directorate General is in the spotlight over accusations that it is threatening hundreds of companies, including major foreign-owned ones, as the cash-strapped government is in dire need of more revenue.
With three months left to meet its collection target, the tax office has assured the public that it has no intention of scaring away people or businesses in its drive to collect taxes.
Director General of Taxation Ken Dwijugiasteadi recently clarified reports that his office had simultaneously issued investigation letters to hundreds of companies with preliminary evidence of tax crimes.
While confirming that the office had sent letters to the companies indicating preliminary evidence (bukper), which would give the office a basis for launching an investigation, Ken insisted that the office had relaxed its approach.
A bukper is issued if tax officials find preliminary evidence that a company may be committing a tax crime that could cause losses to the state.
Analysts and business suspect the bukper is a shortcut for the tax office to meet its collection target, as the companies can be charged with a penalty of 150 percent of the outstanding taxes.
The bukper has been sent to hundreds of major foreign direct investment companies this year, including those having applied for tax restitution and the recent tax amnesty.
