Six Indonesian companies involved in $187 million tax fraud

[News_Editor]

Six Indonesian companies involved in $187 million tax fraud

2011-01-15 15:25:52 GMT+7 (ICT)

JAKARTA, INDONESIA (BNO NEWS) -- An Indonesian lawmaker on Friday announced that six local companies were involved in an alleged $187 million tax fraud, the Jakarta Globe reported.

Markus Melkias Mekeng, member of the House of Representatives, identified the companies as Permata Hijau Sawit, Asian Agri Group, Wilmar Nabati Indonesia, Alfa Kurnia, INJ Internasional and EMA Mojokerto Hospital.

Mekeng is also a member of the House's Commission XI which oversees financial affairs. He said that the companies were identified following a Supreme Audit Agency (BPK) report.

The Commission XI will request the House of Representatives to form a special committee to investigate the case and prosecute the officials from the Directorate General of Taxation who were allegedly involved in the fraud scheme.

"We all know that over the last three years the tax office has been unable to fulfill its collection target, and one of the main causes is that their officials may be misusing their authority for personal interests," said the lawmaker.

In May 2010, Mekeng called for the dismissal of two senior tax officials, including director general Mochamad Tjiptardjo claiming poor performance. He added that the officials misjudged cases involving companies Permata Hijau Sawit, Wilmar and Asian Agri.

The BPK opened an investigation and began an audit of tax office methods in June following the request from Mekeng and Commission XI.

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