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Jakarta Post

Messy management at tax tribunal gives opening for tax cheats, officials to collude

  • The Jakarta Post

  /   Wed, March 31 2010   /  09:50 am

Lack of independent supervision and messy management at the tax tribunal are widely blamed by tax officials as catalysts for corrupt officials to illicitly seek extra earnings. Since full reforms swept the tax office in the middle of 2007, it is getting harder for recalcitrant taxpayers to collude with tax auditors, especially in Greater Jakarta, in paying less taxes. Taxpayers and corrupt tax officials are seeking other loopholes in the reform system to enable their collusion to continue.The tax tribunal is one of the facets exploited for collusion that is spiralling out of control, as seen in the recent case of tax official Gayus Tambunan and his cronies, according to Director General of Taxation Tjiptardjo. Gayus works at the directorate of objection and appeal, allegedly brokering a deal with the tax tribunal.“As it becomes increasingly difficult to fool the system, corrupt officia...