SBY Taking Aim At Indonesia’s Tax Cheaters

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In what may have been a warning shot at Golkar Party chairman Aburizal Bakrie over the investigation into the Bank Century bailout, President Susilo Bambang Yudhoyono on Monday ordered the National Police to hunt down anyone suspected of tax evasion.

Yudhoyono’s directive came a day after a senior presidential aide suggested that politicians pushing the investigation into the government’s Rp 6.7 trillion ($710 million) bailout were the same ones who are allegedly guilty of tax evasion.

The order also came on the eve of a South Jakarta State Court ruling expected today on whether the Ministry of Finance’s Directorate General of Taxation can proceed with a criminal tax evasion case against miner PT Kaltim Prima Coal, which is a unit of Aburizal’s Bakrie group.

“I have to remind you again, do seriously ensure the cessation of street crimes, transnational crimes. Also, don’t forget corruption, tax crimes and debt embezzlement, which have burdened the people,” Yudhoyono said during a National Police top leadership meeting on Monday. “With full confidence, we should solve this, because it concerns justice for our people.”

On Sunday, presidential legal adviser Denny Indrayana said: “It is possible that those who designed [the Century case] are those who have problems with the law, those who do not pay taxes.”

Although Denny didn’t mention names, there is widespread speculation that he was referring to Aburizal, whose Bakrie group owns three companies accused by the tax office of failing to pay Rp 2 trillion in 2007 taxes.

Responding to the president’s request, Comr. Gen. Ito Sumardi, the National Police’s chief of detectives, said the force would fully back up the tax office in pursuing tax evaders. “We will pay special attention to the president’s call,” he said, adding that he had met with tax office head Mochamad Tjiptardjo two weeks ago. //

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