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PPATK to scrutinize taxpayers
Naughty taxpayers must beware as the influential Financial Transaction Reports and Analysis Centre (PPATK) plans to go through their data with a fine-tooth comb to find any indication of money laundering
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aughty taxpayers must beware as the influential Financial Transaction Reports and Analysis Centre (PPATK) plans to go through their data with a fine-tooth comb to find any indication of money laundering.
The PPATK’s initial findings show that dozens of taxpayers participating in the tax amnesty are connected to dubious activities, thus raising concerns over the legality of their declared assets, which amount to a significant sum.
It is planning to dig deeper into the data to make its case, but acknowledges that it may also make use of other data sources due to the fact that the Tax Amnesty Law stipulates data confidentiality.
Articles 20 and 21 of the law says the Finance Ministry and other parties cannot utilize data and information in the tax amnesty as the basis for investigation, inquiries and/or legal charges against taxpayers.
“We can carry it [investigation] out using other data [outside the tax amnesty] after the program ends on March 31. We don’t want to make noise and we can’t let the tax amnesty fail because this is in the interest of the nation,” PPATK chairman Kiagus Ahmad Badaruddin said on Wednesday.
About 691,000 taxpayers had taken part in the tax amnesty as of Feb. 28, equal to only 6 percent of those obliged to file annual tax forms (SPT).
President Joko “Jokowi” Widodo has warned taxpayers that do not take part in the tax amnesty and still own undeclared assets that the government is preparing follow-up law-enforcement measures.
Article 18 of the Tax Amnesty Law says that any undeclared assets owned between Jan. 1, 1985, and Dec. 31, 2015, will be considered additional income and subject to a costly penalty, even three years after the program has concluded.
The Finance Ministry’s Directorate General of Taxation claims it will coordinate with the PPATK if the latter decides to carry out its plan to trace the financial data of certain tax amnesty participants.
“We don’t know yet about that [PPATK’s plan], but we will continue coordinating with it because it has contributed a lot to us by supplying data, which it obtains from the banking industry,” tax office spokesperson Hestu Yoga Saksama said.
He added that the tax authority would support the PPATK’s measures against disobedient taxpayers, including those who have already participated in the tax amnesty.
It expects taxpayers partaking in the program to not be afraid of the PPATK’s move if they are certain their declared assets and repatriated funds have been generated from lawful activities.
“Transparency is important because it will push taxpayers to become compliant. If you are already tax compliant, what are you afraid of?” Yoga said, adding that the tax office would also be able to access banking data in the future.
The ability is ensured through the upcoming implementation of the Automatic Exchange of Information (AEOI), a global initiative agreed by members of the Organization for Economic Cooperation and Development (OECD) and G20 countries.
Sidhi Widyapratama, deputy chairman for the non-bank financial industry at the Indonesian Employers Association (Apindo), said businesspeople expected the government to not chase compliant taxpayers but focus on those that required further clarity on the program.
