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Tycoons, Tax Amnesty and its Achievement
The government is expecting many more conglomerates and wealthy individuals to take part in the second and third round of the tax amnesty program.
Posted On 03 Oct 2016
By: Leo Jegho
GIVnews.com
Minister of Finance Sri Mulyani with tycoons at a dinner at the State Palace a week before the 30 September deadline of the first round of the Tax Amnesty program. (Photo source: Kompas.com)
Jakarta, GIVnews.com – Indonesia has succeeded with the first phase of its tax amnesty program. Joined by more than 350,000 taxpayers, the redemption fees collected unexpectedly reached almost Rp 80 trillion in the closing minutes of the first period, which has ended on 30 September 2016. The total wealth that has been declared amounted to 3,500 trillion.
The 350,000 taxpayers included business tycoons, bureaucrats, politicians, artists, preachers, and ordinary people.
The Rp 80 trillion is around half of the Rp 165 trillion target to be achieved by the whole nine-month of tax pardon program, which will end on 30 March 2017. Meanwhile, total declaration target is set at Rp 4,000 trillion.
The first period of the amnesty program was set for 1 July -30 Sept 2016, with only two percent of the targeted wealth declared. The second period will be implemented on 1 October – 31 December 2016, with redemption charge of 3 percent. Finally, the third period of the program will run form 1 January to 30 March 2017, with pardon charge of 5 percent.
On the evening of 30 September, when visiting the Tax Directorate General office, President Joko ‘Jokowi’ Widodo and Minister of Finance Sri Mulyani Indrawati could not hide their feelings. The minister said the Rp 80 trillion was ‘encouraging’ while the President said it provided a “momentum for us to reform our tax system, increase our tax base and raise our tax ratio.”
It is widely perceived that the first achievement during the first period of the program was partly credited to the significant participation of business tycoons. Since the launching of the Tax Amnesty Program on 1 July 2016, the government had made ceaseless, all-out efforts to push large taxpayers to declare their wealth and pay amnesty fees. The Director General of Tax of the Ministry of Finance formed a special task force to approach ‘big fish’ taxpayers. Every day the task force’s staff members made phone calls to these individuals to remind them about the amnesty program. They told them that it was the last chance for them to get the cheapest tariff.
About a week before the 30 September deadline, President Jokowi invited a group of ‘super-rich’ taxpayers to a dinner at the State Palace. On the occasion, the President urged them to take part in the tax amnesty program. But, some of them requested the President to extend the 30 September deadline to the end of this December, which the President refused to do. He argued that the existing tax amnesty law disallows any deadline extension.
In the talks that took place at the State Palace, the two sides eventually agreed to not extend the first period of the tax amnesty program. This means that the taxpayers must declare their wealth by 30 September 2016. And, they also accepted the President’s decision to allow them to complete and submitted their amnesty dossiers until the end of this year provided that they would pay their amnesty fees by 30 September.
Minister Sri Mulyani with key members of the Indonesian Chamber of Commerce and Industry at the Tax Directorate General office on 27 September 2016. (Photo source: Kompas.com)
Shortly after the State Palace dinner, a rising number of conglomerate leaders went to tax offices to report their assets. They included Chandra Lie (Sriwijaya Air), Aburizal Bakrie (Bakrie Group), Anthoni Salim and Franky Welirang (Salim Group), Franky Wijaya (Sinarmas Group), and Djoko Susanto (Alfamart Group).
Meanwhile, a few days before the State Palace gathering, a number of tycoons had reported their wealth to the tax offices. Among them were Sofyan Wanandi (Gemala Group), James Riady (Lippo Group), Erick Tohir (Mahaka Group), and Garibaldi Thohir (Adaro Energy).
With this development, the government is expecting many more conglomerates and wealthy individuals to take part in the second and third round of the tax amnesty program.
http://www.globalindonesianvoices.com/28024/tycoons-tax-amnesty-and-its-achievement/
The government is expecting many more conglomerates and wealthy individuals to take part in the second and third round of the tax amnesty program.
Posted On 03 Oct 2016
By: Leo Jegho
GIVnews.com
Minister of Finance Sri Mulyani with tycoons at a dinner at the State Palace a week before the 30 September deadline of the first round of the Tax Amnesty program. (Photo source: Kompas.com)
Jakarta, GIVnews.com – Indonesia has succeeded with the first phase of its tax amnesty program. Joined by more than 350,000 taxpayers, the redemption fees collected unexpectedly reached almost Rp 80 trillion in the closing minutes of the first period, which has ended on 30 September 2016. The total wealth that has been declared amounted to 3,500 trillion.
The 350,000 taxpayers included business tycoons, bureaucrats, politicians, artists, preachers, and ordinary people.
The Rp 80 trillion is around half of the Rp 165 trillion target to be achieved by the whole nine-month of tax pardon program, which will end on 30 March 2017. Meanwhile, total declaration target is set at Rp 4,000 trillion.
The first period of the amnesty program was set for 1 July -30 Sept 2016, with only two percent of the targeted wealth declared. The second period will be implemented on 1 October – 31 December 2016, with redemption charge of 3 percent. Finally, the third period of the program will run form 1 January to 30 March 2017, with pardon charge of 5 percent.
On the evening of 30 September, when visiting the Tax Directorate General office, President Joko ‘Jokowi’ Widodo and Minister of Finance Sri Mulyani Indrawati could not hide their feelings. The minister said the Rp 80 trillion was ‘encouraging’ while the President said it provided a “momentum for us to reform our tax system, increase our tax base and raise our tax ratio.”
It is widely perceived that the first achievement during the first period of the program was partly credited to the significant participation of business tycoons. Since the launching of the Tax Amnesty Program on 1 July 2016, the government had made ceaseless, all-out efforts to push large taxpayers to declare their wealth and pay amnesty fees. The Director General of Tax of the Ministry of Finance formed a special task force to approach ‘big fish’ taxpayers. Every day the task force’s staff members made phone calls to these individuals to remind them about the amnesty program. They told them that it was the last chance for them to get the cheapest tariff.
About a week before the 30 September deadline, President Jokowi invited a group of ‘super-rich’ taxpayers to a dinner at the State Palace. On the occasion, the President urged them to take part in the tax amnesty program. But, some of them requested the President to extend the 30 September deadline to the end of this December, which the President refused to do. He argued that the existing tax amnesty law disallows any deadline extension.
In the talks that took place at the State Palace, the two sides eventually agreed to not extend the first period of the tax amnesty program. This means that the taxpayers must declare their wealth by 30 September 2016. And, they also accepted the President’s decision to allow them to complete and submitted their amnesty dossiers until the end of this year provided that they would pay their amnesty fees by 30 September.
Minister Sri Mulyani with key members of the Indonesian Chamber of Commerce and Industry at the Tax Directorate General office on 27 September 2016. (Photo source: Kompas.com)
Shortly after the State Palace dinner, a rising number of conglomerate leaders went to tax offices to report their assets. They included Chandra Lie (Sriwijaya Air), Aburizal Bakrie (Bakrie Group), Anthoni Salim and Franky Welirang (Salim Group), Franky Wijaya (Sinarmas Group), and Djoko Susanto (Alfamart Group).
Meanwhile, a few days before the State Palace gathering, a number of tycoons had reported their wealth to the tax offices. Among them were Sofyan Wanandi (Gemala Group), James Riady (Lippo Group), Erick Tohir (Mahaka Group), and Garibaldi Thohir (Adaro Energy).
With this development, the government is expecting many more conglomerates and wealthy individuals to take part in the second and third round of the tax amnesty program.
http://www.globalindonesianvoices.com/28024/tycoons-tax-amnesty-and-its-achievement/