The recent disclosure of a bribery case worth billions of rupiahs allegedly involving a tax official by the Corruption Eradication Commission (KPK) indicates that bribery to reduce tax payments continue.
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PRAYOGI DWI SULISTYO / DIMAS WARADITYA NUGRAHA
·4 minutes read
JAKARTA, KOMPAS — The recent disclosure of a bribery case worth billions of rupiahs allegedly involving a tax official by the Corruption Eradication Commission (KPK) indicates that bribery to reduce tax payments continue. However, on the other hand, the disclosure of the bribery case is also a sign that tax reform is on track.
The alleged corruption was uncovered thanks to a cooperation between the Finance Ministry\'s internal auditors and the KPK.
In a virtual press conference held in Jakarta on Wednesday (3/3/2021, Minister of Finance Sri Mulyani Indrawati said the employee being investigated by KPK had been suspended so that the legal process would not have a negative impact on the activities of the Taxation Directorate General.
"The alleged bribery involving the Taxation Directorate General employee is clearly a betrayal and hurts the feelings of all employees at the Finance Ministry who continue to adhere to the principles of integrity and professionalism, as well as all Indonesian people," said Sri Mulyani.
Before being suspended, Sri Mulyani said the accused had first submitted his resignation. However, Sri Mulyani did not reveal the position of the employee allegedly involved in the bribery case that occurred in early 2020.
The alleged bribery case was uncovered following a public complaint, which was then followed up by investigation by the Finance Ministry’s internal auditors and the KPK. "The Finance Ministry will never tolerate corruption and violations of the code of ethics committed by any employee within the ministry. What\'s more, taxes are the backbone of state revenues, "said Sri Mulyani.
Worth tens of billions of rupiah
Acting KPK spokesperson Ali Fikri said he could not yet disclose the details of the case or the suspect. The details would be unveiled when the suspect had been arrested, he added. Earlier, the KPK’s deputy chairman, Alexander Marwata, said the KPK was still investigating the case. He said the bribes in this case were worth tens of billions of rupiah.
The method is just like that. Otherwise, through extortion. The tax value is set higher so they can extort taxpayers.
"As usual, the case involves the inspection team. When it comes to taxes, the method is just like that. How the taxpayers can reduce their tax payment? They can bribe the tax inspector so that the tax payment is lowered. The method is just like that. Otherwise, through extortion. The tax value is set higher so they can extort taxpayers, "said Alex.
Meanwhile, a member of the Commission XI of the House of Representatives (DPR), M Misbakhun, said there had been an increase in exchanges of information between the Tax Directorate General and the KPK as part of the efforts to improve taxpayer compliance in state-owned assets operated by the private companies such as in mining, plantation and forestry sectors.
"The bribery case is a lesson as well as a warning for all tax employees and taxpayers that the chances for corruption are getting narrower," said Misbakhun.
Tax reform
Center of Reform on Economy Research Director Piter Abdullah said the tax bribery case showed tax reform still had a loophole.
"In the past, bribing an employee of the Tax Directorate General to reduce the tax value had been common practice. After tax reform, such practice had declined. The Tax Directorate General has relatively been cleaner, but the temptation is high, ”he said.
The integrity of the employees of the Tax Directorate General said Piter, was tested when dealing with large taxpayers such as big companies that have tax obligations of hundreds of billions of rupiah. The most common practice tax officials accepting an amount of money from the taxpayers as compensation for his or her efforts to reduce tax payment.
Danny Darussalam Tax Center researcher B. Bawono Kristiaji said that the case showed consistency in the government’s tax reform agenda. He said in past several years, a number of improvements, both in the upstream and downstream sides of the tax sector, had been taken to reduce irregularity.
According to him, the keys to the success of a clean tax system are transparency, a code of ethics, and a culture as well as a system based on information technology to reduce face-to-face meetings. (PDS/DIM)
(This article was translated byHendarsyah Tarmizi).