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Jakarta Post

Committee uncovers 12 loopholes in taxation

  • Aditya Suharmoko

    The Jakarta Post

  /   Fri, April 16 2010   /  10:45 am

The Taxation Oversight Committee has uncovered 12 loopholes in the taxation system that can be exploited by corrupt officials and taxpayers, chairman Anwar Suprijadi told legislators in a hearing Thursday.The loopholes begin at the examination process where tax officials examine taxpayers tax returns. “Findings [of tax evasion] can be negotiated,” Anwar told the House of Representatives’ Commission XI overseeing financial affairs.If taxpayers object to the findings, there is a second loophole where tax officials offer to weaken the findings before sending them to the Tax Tribunal.The third loophole occurs at the Tax Tribunal where judges and officials make “confusing” objections to benefit taxpayers, he said.Anwar added that the next three loopholes  occur when examining preliminary evidence, making the evidence ready for prosecution and during the trial by tampering with ...