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Indonesian Lawmakers Blast Tax Officials Again in Wake of Court Ruling
Irvan Tisnabudi | May 28, 2010

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Valkyrie
4:40am May 30, 2010

Has Bambang Soesatyo forgotten to include his criticisms on the Lapindo handling or has he conveniently decided to ignore the issue. But of course! He's also a"yellow" man.


Putrimawar
6:09am May 29, 2010

Why do we have to pay tax? I have not seen any service provided by the government to tax-payers. All services provided by government officials are for a price, nothing is free. We pay public schools for our children, we pay the police for a service, we pay for KTP, KK and whatever, we even pay parking on public streets. So, why do we pay tax? I feel that the Indonesian government is treating us, the tax-payers, just like a bunch of criminals who have to work hard to feed and clothe government officials so that they can live nicely. We, tax-payers, have to unite and say NO to paying taxes for no service.


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The country’s top tax officials are under fire again after the Supreme Court ruled against the tax office on Wednesday in a high-profile case involving a company under the Bakrie group.

Members of the House of Representatives’ Commission XI, which oversees financial affairs, have called for new Finance Minister Agus Martowardojo to remove two senior officials at the Directorate General of Taxation, director general Mochamad Tjiptardjo and Pontas Pane, the interim director of intelligence and investigations.

Golkar Party lawmaker Melchias Markus Mekeng, the chairman of the commission’s working committee on taxes, said their “poor performance” in handling cases involving companies such as PT Permata Hijau Sawit, PT Wilmar and Asian Agri was unacceptable.

Melchias also said Ramram Brahmana, the head of the North Sumatra branch of the tax office, be removed from his post.

“In order to make sure the reform process within the tax office is continued, we urge the finance minister to de-activate the three officials from their positions in the tax office,” he said.

His statement came a day after the Supreme Court ruled in favor of PT Kaltim Prima Coal in its tax-evasion case.

KPC is a unit of PT Bumi Resources, the flagship of the Bakrie group led by Aburizal Bakrie, the powerful chairman of the Golkar Party. Three Bakrie group companies, including Bumi Resources, are accused of evading a total of Rp 2.1 trillion ($227 million) in taxes during the 2007 tax year.

Melchias was among Commission XI lawmakers who blasted tax officials earlier this month, saying the tax law should be revised because senior tax officials have “too much authority and power over taxpayers.”

On the same day, Golkar lawmaker Bambang Soesatyo, a member of House Commission III for legal affairs, said it was investigating the alleged roles of Tjiptardjo and Pontas in a case of alleged tax fraud involving Wilmar Inter­national Group.

Thursday’s denouncement of tax officials also followed their failure to attend a meeting scheduled for that day with the committee regarding the case against Permata Hijau Sawit. The request to attend was sent on Monday.

In a letter to the committee, Tjiptardjo said more time was needed to prepare the documents required to answer the lawmakers’ questions.

However, Melchias said the director general committed an “inappropriate act.”

The working committee also urged an audit to be conducted by a party separate from the tax office regarding cases involving PHS, Asian Agri and Wilmar, among others, and that there be a review of the tax office’s performance in dealing with the cases.

Also on Thursday, Agus said he would continue his efforts to reform his ministry, including the tax office.

“There is room for improvement in the tax office,” he said, while admitting he did not yet have “good knowledge” of ongoing tax probe cases.

“I still have to further study these tax cases before I can make any decisions,” the former banker said.

The priority is making sure that businesses grow, but they also pay their taxes, because this is important for the nation and its budget. For [tax probe] cases involving companies, we hope to finish them soon, not because we are aiming to bring certain people down, but we have to instill a tax-paying discipline in the nation,” Agus added.