Tax office gets Rp 2.3B a day by taking a hostage

JAKARTA. In an effort to boost tax revenues, the Directorate General of Taxation has collected Rp 2.37 billion (US$ 177,608) in just one day from a taxpayer who had been taken hostage because of having been in tax arrears for three years.

The tax authority’s East and North Kalimantan regional office took a taxpayer identified only as EB, who was a shareholder in gold and silver mining company PT MMKU, hostage on Thursday.

“EB was taken hostage after many efforts undertaken by the tax office, including sending warning letters and attempted confiscations, which have been unsuccessful,” said regional office head Samon Jaya in a press conference on Friday.

EB was in tax arrears from his income tax and land and building taxes between 2013 and 2016.

The tax office held EB hostage in Salemba Penitentiary, Central Jakarta, for 16 hours before he fully paid his tax arrears and was freed. It expected that EB’s case would act as a warning for other non-compliant taxpayers.

Since January, the tax authority had taken 46 taxpayers with tax arrears hostage and was still pursuing 66 others this year.

It is ramping up legal enforcement for delinquent taxpayers after a tax amnesty ended in March 31 this year as the government had set a goal for an 18 percent increase in tax revenues to Rp 1.31 quadrillion. (bbn)