Foreign tax of Rp 93.4 Trillion

Foreign tax of Rp 93.4 Trillion - Targeting the government to reap taxes from foreigners, capital market participants, to foreign companies this year amounted to Rp 93.4 trillion. 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 trillion, up to now we have to collect Rp 59.9 trillion," said Head of the Regional Office of the Special Dgt Riza Noor Karim here on Friday (17/09/2010) .

In a separate, tax analysts, University of Indonesia, Darussalam, said that tax revenues increase, the Directorate General of Taxes need to strengthen the rules on tax antipenghindaran internationally.

How to tax evasion used varied, 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 whose capital is dominated by debt rather than equity investment. For the record, the debt tends to be used as tax payments trimmer.

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. Not convicted of depositing PT SI Income Tax (Income Tax) of Article 21 which was paid by workers and Value Added Tax (VAT).

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