Indonesian House Piles Pressure on Tax Office As Wilmar Denies Fraud Allegations
Jakarta Globe | May 20, 2010
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Lawmakers on Wednesday ratcheted up the pressure on the Directorate General of Taxation, saying that companies should take legal action against the office if they believed they had been treated unfairly during a tax investigation.
Singapore-based Wilmar International Ltd, the world’s biggest palm-oil trader and the latest company to be dragged into the growing list of scandals plaguing the tax office, saw its shares plunge by 7 percent on Wednesday — the most in 17 months — following claims by a lawmaker that an internal tax office report alleged that the company had received “questionable” value-added tax rebates of Rp 1.7 trillion ($187 million) in 2007 and 2008, and was expecting Rp 1.9 trillion in 2009.
The company has strongly denied the allegations.
The statements come just one day after lawmakers called for a revision of the tax law that they said gave the Directorate General of Taxation too much power.
A legislative working committee has been investigating the tax office since the scandal involving mid-ranking tax officer Gayus Tambunan, who was found with billions of rupiah in his bank accounts, broke in March, revealing a so-called tax mafia operating within the office.
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