JAKARTA (TheInsiderStories) – The Indonesian government plans to impose 200 per cent fines on taxpayers who haven’t sent back or repatriated their wealth from overseas. Authorities are now setting their sights on those who did not full their commitment during the tax amnesty.
The Tax Office at the Finance Ministry has repeatedly said that once the program ended, its officers would hunt down unreported assets and slap evaders with a hefty penalty of 200 per cent of their original tax bills.
Tax officials collected Rp138 trillion (approx. US$9.6 billion) in repatriated funds by December 2017, but the total of overseas assets brought home was still below the taxpayers’ commitment Rp147 trillion (US$10.2 billion).
“Still there is a shortfall of Rp9 trillion (US$630 million) and we will go after it,” said Director General of Taxes Robert Pakpahan on Friday (5/1).
Last year, more than 800,000 people signed up for the amnesty scheme. Among them were a number of high-profile taxpayers. They included former President Suharto’s son Tommy, tycoon Aburizal Bakrie, the Thohir brothers and the Riady family.
Funds from Singapore repatriated by Indonesians accounted for more than half of the total amount sent back under the country’s landmark tax amnesty scheme: more than 57 per cent, or Rp84.52 trillion, was sent from Singapore.
Singapore also accounted for most of the assets declared under the program, or 73 per cent, amounting to Rp751.19 trillion.
Apart from Singapore, huge amounts have also been declared by Indonesians owning assets in the British Virgin Islands, Hong Kong, Cayman Islands, Australia and elsewhere.
The amnesty scheme has, however, fallen short of expectations as it draws to a close, realizing only a fraction of the government’s target of 1,000 trillion rupiah, which some had dismissed as overly ambitious.
Written by Elisa Valenta, email: email@example.com