Sunday, September 19, 2010

Expatriate tax of Rp 93.4 billion

Jakarta, Kompas - Targets the government to reap taxes from foreigners, capital market, to foreign companies this year amounted to Rp 93.4 billion. This value is higher than 23 percent compared to the same target in the year 2009. DG efforts to collect tax revenue from foreigners is still colored by dishonest behavior.
"The revenue target that must be collected, Rp 93.4 billion, up to now we have to collect Rp 59.9 billion," said Head of the Regional Office of the Special Dgt Riza Noor Karim in Jakarta, Friday (17 / 9).

Tax Analysts, University of Indonesia, Darussalam, said that tax revenues increase, the Directorate General of Taxes need to strengthen anti-avoidance tax rules on international.

Tax avoidance mode used varies, ranging from transfer pricing, controlled foreign corporation, thin capitalization, and anti - treaty shopping.

Transfer pricing is the allocation of engineering effort antarbeberapa corporate profits in a single group of companies by utilizing international relations.

Controlled foreign corporation, foreign people in Indonesia could become a shareholder in a company in a country that is not required to pay taxes to the Indonesian.

Thin capitalization, the company that dominated their capital investment than the stock of debt (debt tend to be trimmer tax payments).

Anti-treaty shopping, a situation when someone can take advantage of the tax treaty the two countries where he earned income can be tax free because the countries they live does not make a deal with Indonesia.

"In minimizing its tax burden, usually a multinational corporation to run the schemes. However, it should be considered in making such provision should be based on international best practices so that provisions could be implemented without disturbing the business world, "said Darussalam.

Two criminal cases

Special Jakarta Regional Office of Directorate General of Taxes dealing with two cases of criminal tax violations, namely the security services company PT SI and companies engaged in mining, Bumi Resources.

Riza said, for the case of PT SI, president director, namely KD Mc K, has been sentenced to three years and six months in jail plus paying a fine of Rp 18 billion by the judges in South Jakarta State Court.

The verdict set

on August 20, 2010. PT SI sentenced to not pay income tax (income tax) of Article 21 that have been paid by workers and Value Added Tax (VAT).

Taxes that are not remitted it happened in 2004 and is expected to cost the state USD 1.6 billion of income tax violations of Article 21 and Rp 5.4 billion from VAT violations. On this tax penalty, KD Mc K fined twice.

Source: Kompas Daily, 18 September 2010

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