Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Cheating at tax office raises concern

  • Rendi A. Witular

    The Jakarta Post

Jakarta   /   Wed, May 5 2010   /  09:50 am

A series of recently uncovered tax crimes in several major cities has highlighted at least three methods of cheating on taxes, most of which have been regularly used for at least five years. According to a preliminary investigation at the tax office, the mostdevastating method is the engineering of fictitious refund claims from value-added tax.This method is to make fictitious transactions between firms to create the impression that one of them has paid an excessive amount of tax to the government. Through loopholes in the tax system, the firm then files a claim in the form of a tax refund.Finance Minister Sri Mulyani Indrawati on Monday said this practice was employed by a North Sumatra business group she identifed by the initials PHS. The head of the group is believed to have fled the country after embezzling Rp 300 billion (US$33 million).  Tax officials say fictitious refund cla...