Tax Office Looks Into Rp 29t Shortage in Asset Repatriation i

Indonesia's Tax Office has cited discrepancies in its repatriation report, revealing a gap of about 21 percent below the amount promised by tax amnesty participants, a senior official said on Wednesday (11/01).(Antara Photo/Septianda Perdana)

By : Tabita Diela | on 3:57 PM January 11, 2017
Category : Business, Economy

Jakarta. Indonesia's Tax Office has cited discrepancies in its repatriation report, revealing a gap of about 21 percent below the amount promised by tax amnesty participants, a senior official said on Wednesday (11/01).

According to bank data from 21 gateway banks, as of Dec. 31, participants only repatriated Rp 112 trillion ($8.4 billion) into the country, but that is Rp 29 trillion short of the Rp 141 trillion declared.

The tax amnesty program, which forgives past tax evasion in exchange of tax payer declaring or repatriating hidden assets and paying small fees on the assets to government, initially targeted to attract Rp 1,00o trillion worth of assets held by Indonesians that was parked abroad.

It was likely that either the taxpayers wanted to declare their assets as local assets instead of foreign held assets, or they changed their mind about repatriation, Ani Natalia, a spokesperson at Directorate General of Taxes at the Ministry of Finance, said.

Yustinus Prastowo, the executive director of Center for Indonesia Taxation Analysis, or CITA, said that taxpayers have chosen to declare their assets locally under the tax amnesty initiative so their assets would not be locked up in Indonesia for three years, which is typically the case.

Under a regulation issued by the finance ministry in 2016, a repatriated asset may be declared as a local asset.

Finance Minister Sri Mulyani Indrawati has said that taxpayers who fail to bring back their assets in time "will face consequences."

For those who fail to do so, according to the Tax Amnesty Law, individual taxpayers will have to pay income tax of 30 percent and corporate taxpayers will have to pay 25 percent on assets.

Hestu Yoga Saksama, the director of counseling, service and public relations at the Indonesian Tax office, said that banks and gateway banks must submit a complete report to verify taxpayer declarations to the tax office by Jan. 31.

The tax office offers amnesty at 2 percent in the first period, 3 percent in the second period and 5 percent in the last.

According to data from the Directorate General of Taxes at the Ministry of Finance live dashboard on Tuesday, taxpayers have declared Rp 4,304.9 trillion in previously unreported wealth and pledge to repatriate up to Rp 140.5 trillion in undeclared overseas assets.

The same board also showed taxpayers have so far paid Rp 103.3 trillion in total tax amnesty-related penalties. This includes the 2 and 3 percent tariff, payment of preliminary evidence and tax due payment.

Show More

 
MORE NEWS