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Tax office graft suspect resigns as probe continues: Sri Mulyani

An unidentified tax official is suspected of accepting billions of rupiah from a taxpayer to lower the latter’s dues.

Dzulfiqar Fathur Rahman and Nina Losana (The Jakarta Post)
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Jakarta
Thu, March 4, 2021

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Tax office graft suspect resigns as probe continues: Sri Mulyani Finance Minister Sri Mulyani Indrawati delivers her remarks after the signing of a memorandum of understanding at the Office of the Coordinating Economic Affairs Minister in Jakarta in February 2020. (Antara/M Risyal Hidayat)

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tax office staff member suspected of graft has resigned to ensure a smooth investigation into the alleged bribery case, Finance Minister Sri Mulyani Indrawati has said.

The unidentified staffer was named a suspect by the Corruption Eradication Commission (KPK) for allegedly accepting billions of rupiah from a taxpayer to lower the latter’s dues. The anti-graft body is still investigating the case.

Sri Mulyani said Wednesday that the ministry's internal compliance unit and the KPK had been investigating the case since a member of the public lodged a report in early 2020.

“The Taxation Directorate General is doing research on the taxpayer allegedly involved, and if there is evidence of a shortfall in the tax payment, the directorate general will act on it in line with the prevailing regulation,” Sri Mulyani said in a virtual briefing on Wednesday.

The report comes at a time when the directorate general is in the middle of handling the annual tax returns (SPT) filed for individuals this month and for corporations in April.

Indonesia’s tax revenue took a hit due to the pandemic, contracting 15.3 percent year-on-year (yoy) to Rp 68.5 trillion (US$4.8 billion) in January, Finance Ministry data shows. The tax-to-GDP ratio dropped to around 8.3 percent last year from around 9.8 percent in 2019.

The government has granted workers and companies tax breaks to help them stay afloat during the pandemic. Last year, a total of 464,316 taxpayers benefited from the incentives.

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