Monday, July 5, 2010

Heavier Punishment for Tax Inspector

In Indonesia, men and women working with the Directorate General of Taxation are given a lot much higher salary compared to other civil servants, so that they can do their job properly and responsibly in collecting Tax badly needed for the management and development of the country.

Due to this fact, it is obvious that Tax Inspectors who are not honest in doing their jobs should face heavier legal consequences.

Please find below a related article that I quoted from The Jakarta Globe.

Prosecutors Seek Lengthy Jail Time for Tax Inspector

Prosecutors are seeking a 12-year sentence for suspended tax official Edi Setiadi for his role in a Rp 81.43 billion ($8.9 million) tax evasion case involving a provincial government-owned bank in West Java between 2001 and 2002.

Edi, a former chief tax investigator at the West Java Tax Office in Bandung, is alleged to have manipulated the tax returns of lender PT Bank Jabar-Banten in exchange for Rp 2.55 billion in bribes, prosecutors told the Anti-Corruption Court in Jakarta on Monday.

The Corruption Eradication Commission (KPK) previously said the tax fraud amounted to Rp 44.3 billion, but have since revised that estimate based on witness testimony to Rp 81.43 billion.

“The defendant’s actions caused substantial losses to the state,” KPK prosecutor Hadianto told the court.

Prosecutors allege that in 2001, Bank Jabar was supposed to have paid Rp 129.2 billion in taxes, which Edi slashed to Rp 74 billion. In 2002, the lender owed the state Rp 51.8 billion, which Edi again reduced to Rp 25.57 billion, prosecutors say.

The KPK last week named four of Edi’s former subordinates suspects for conspiring in the felony. They include Roy Yuliandri, Dedy Suwardi, Muhammad Yazid and Dien Rajana Mulya.

Edi is alleged to have taken Rp 565 million from the Rp 2.55 billion kickback and given the rest to the four others.

The KPK has also named former Bank Jabar chief accountant Hery Achmad Buchori a suspect in the case.

Prosecutors are seeking a Rp 200 million fine from Edi and restitution amounting to the sum of money he allegedly took.

Former Bank Jabar director Umar Syarifudin has already been convicted in the case and sentenced to seven years in prison.

In a separate case, the KPK has given 10 members of the Jakarta City Council an ultimatum to hand over the bribe money they allegedly received from the city administration to suppress a follow-up inquiry into April’s Tanjung Priok riot.

“A week ago we sent the councilors summons to clarify the issue and hand over any money they may have received as illegal gratuities,” KPK spokesman Johan Budi said on Monday. “So far none of them has come forward.”

Council Deputy Speaker Triwisaksana previously alleged that administration officials had attempted to bribe the councilors to not follow through on findings from the inquiry that may have seen several city officials face criminal negligence charges for the deadly riot.

But Triwisaksana said he was not aware of any councilor having taken a bribe.

Several weeks after the riot, in which three people died, a fact-finding team from the City Council called for the North Jakarta mayor and public order agency chief to be held accountable for their roles.

However, the recommendations were not followed up on by either the council or the city administration.


Yari NK said...

I wonder if those who enjoy higher salary are really more straight-arrow than the ones who get lower salary since in this case, it doesn't matter how high their salary is, it seems that their corrupt mentality is the real problem... and that kind of mentality that has eaten away at the conscience... what a shame!

H. Nizam said...
This comment has been removed by the author.
H. Nizam said...

Hi Yari,
It is the nature of human beings to always want more than he/she gets.
And weak law enforcement make things worst.

colson said...

Corrupt people are bad ( morally, economically and socially), corrupt civil servants and officials are worse and corrupt civil servants and officials occupying crucial, pivotal vulnerable and excessively prone to corruption, are worst.

Si I guess it is a common sense measure to pay these key players well ( better than other civil servants, officials) and to punish them harder if they fail to fight off the temptations offered to them.

umihoney said...

Apparently the high remunerations is not effective to ward off temptation.Maybe a stiffer sentence and punishment would be a better deterrent.

Few men have virtue to withstand the highest bidder - George Washington

H. Nizam said...
This comment has been removed by the author.
H. Nizam said...

Guys, something is wrong with this blogger/blogspot comment widget, my earlier reply is not shown.

Most human would always want more than they already have. As long as they do not violate the law it's okay. Problem is that there many allege violations which are not processed properly by the law enforcement agencies.

Yes you are right, the key is strong law enforcement and stiffer sentence and punishment.

umihoney said...

Ya I lost 4 comments from my blog..prior to that I could not moderate..kept getting error msg...Nensa Moon lost hers too..weird eh.

H. Nizam said...

Yes, what's wrong with Blogger/ Blogspot? Maybe because many are turning to them again after they provide more templates. I hope it wouldn't continue.