JAKARTA NOW READY TO ‘USE THE STICK’
Those who didn’t take part in programme face much heavier penalties of as much as 200pc, says official
JAKARTA credit-card data from banks and compare those with tax reports after the amnesty programme uncovered more than US$353 billion (RM1.5 trillion) in previously undeclared assets.
While the participants in the amnesty would be “supervised”, the rich or large taxpayers who didn’t take part would pay a much heavier price, including penalties of as much as 200 per cent, said Hestu Yoga Saksama, director for public relations at the Directorate General of Taxation on Wednesday.
The amnesty programme, a key plank in President Joko Widodo’s push to boost revenue needed to fund ambitious spending plans, ends today with the government already netting 125 trillion rupiah (RM41.5 billion).
More than 800,000 participants have declared 4,704 trillion rupiah of assets since the amnesty began in July, with Singapore topping the list of countries where Indonesians stashed money.
“The tax amnesty was a carrot, so they’ve got to use the stick, they got to show that if you didn’t comply when we gave you a chance to do so, we’re going to hit you hard,” said Wellian Wiranto, an economist at Oversea-Chinese Banking Corp in Singapore. “It would show that they take tax compliance seriously.”
The government had set a repatriation goal of 1,000 trillion rupiah, but only 146 trillion rupiah was brought back. Bloomberg
More than 800,000 participants have declared 4,704 trillion rupiah of assets since the government’s tax amnesty began in July, with Singapore topping the list of countries where Indonesians stashed money.