5 April 2017

Indonesia takes aim at tax money

Published by Hubbis – 5th April 2017

The Indonesian government has pledged to continue to target taxpayers who failed to repatriate their foreign wealth during the country’s tax amnesty programme.

Up to the deadline of March 31, around IDR27.4 trillion (USD2 billion) in repatriation commitments did not make it home, said local media.

According to reports citing the directorate general of tax in the Finance Ministry, Ken Dwijugiasteadi, one of the causes is because taxpayers prefer to choose cross trading, which can be undetected, so does not get recorded in the tax amnesty data.

Reports said the government is following one of two courses of action: first is to impose an added 2% retribution if a taxpayer declares foreign wealth without repatriating it; secondly is to impose a 48% fine if the taxpayer cancels the declaration of their wealth.

According to government data, more than 3,500 taxpayers committed to repatriate their foreign wealth, worth IDR147 trillion. But up to March 31, banks in the programme said they had only received a IDR121 trillion in repatriated funds.