Jakarta Globe, December 29, 2016
Jakarta. Finance Minister Sri Mulyani Indrawati said she will clamp down on tax consultants involved in tax evasion, as they are currently inundated by clients seeking their assistance to join the government's tax amnesty program.
Jakarta. Finance Minister Sri Mulyani Indrawati said she will clamp down on tax consultants involved in tax evasion, as they are currently inundated by clients seeking their assistance to join the government's tax amnesty program.
"I've
asked Mr. Ken [Dwijugiasteadi, the director general of taxes] to check out the
tax identification numbers a many consultants," she told reporters on
Wednesday (28/12).
"The
consultants are cashing in big from the tax amnesty program. I've seen one who
reported up to 30 asset declaration letters," she said.
Sri Mulyani
made the comment during an impromptu visit to the headquarters of the
Directorate General of Taxation in Jakarta, where she found employees from
several tax consultancies submitting their clients' wealth reports.
"It's
common practice in industrial countries; even individual taxpayers there use
the services of tax consultants," she said. "But please don't try to
lower [the value of taxpayers' assets] so they can receive the 0.5 percent
tariff."
The
government offers a 3 percent tariff for taxpayers who come clean on previously
unreported assets abroad and agree to repatriate them. The government also
offers a 0.5 percent tariff for small and medium enterprises with less that Rp
10 billion ($742,000) in total assets.
More than
170,000 taxpayers have joined the second part of the tax amnesty program and
around 70 percent of them are small and medium enterprises, according to Hestu
Yoga Saksama, director of counseling, service and public relations at the tax
office.
The number
of participants in the tax amnesty program, which started in July this year,
has reached 563,000 by Thursday.
Tax
director general Ken Dwijugiasteadi reported to the minister during her visit
that the amnesty process is "under control" and that no emergency
measures will be taken to address the lower-than-expected number of
participants.
"Most
of the high-wealth [individuals] have joined the first part of the tax amnesty,
so the additional state revenue from the program will not be as high," Sri
Mulyani said.
Despite the
slower progress, the minister said she still "hopes for the best" and
that each regional tax office has already prepared a plan to start the third
part of the tax amnesty program in a bid to achieve a steady result.
So far, the
government has collected Rp 106 trillion in total tax amnesty-related penalties
– which include the 2 percent and 3 percent tariffs, payments of preliminary
evidence from tax investigations and tax due payments – according to tax office
data.
Taxpayers
have also declared Rp 4,193.1 trillion in previously unreported assets and
repatriated Rp 141.3 trillion so far.
The government
has set a target of Rp 4,000 trillion in declared assets, Rp 1,000 trillion in
repatriated assets and Rp 165 trillion in additional tax revenue.
"If
the results at the end of the second part have not met our expectations, then I
will step up the campaign in the last part," the minister said.
The tax
office will not only focus on tax consultants in the last part of the tax
amnesty program, which starts in January, Sri Mulyani said. Notaries, doctors,
tax consultants, lawyers, architects, accountants, governors and executives of
state-owned companies will be targeted next.













