Gov`t Hires Foreign Intelligence Agency to Repatriate Funds
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - The Indonesian government has planned to involve an international organization to trace assets owned by Indonesian nationals in foreign countries.
Muhammad Yusuf, head of the Financial Transaction Reports and Analysis Center (PPATK), said that his institution had coordinated with The Egmont Group Financial Intelligence Unit to trace assets in tax haven countries.
Yusuf claimed that the PPATK had data similar with the Panama Papers.
“[The document contains data on] public officials, professionals and legal entities,” Yusuf said on Tuesday, April 26, 2016 at the House of Representatives building in Jakarta.
Yusuf explained that the findings must be investigated further, since the motive behind the establishment of shell companies or hiding assets in tax havens countries remain unknown.
“We need to prove whether the motive is to avoid taxes or not,” Yusuf said.
Yusuf admitted that repatriating the assets would not be easy. Under the law on taxation, Yusuf added, it would take six months to expose a case. Therefore, Yusuf believes that the tax amnesty law would accelerate the fund repatriation.
“But we must not let the policy to ignore the prevention and eradication of money laundering crimes,” Yusuf warned.
Earlier, Bank Indonesia (BI) governor Agus Martowardojo predicted that the total amount of funds owned by Indonesian nationals in foreign countries reached Rp 3,147 trillion (US$238.4 billion). Agus added that 40 percent of the fund came from illegal activities, such as drugs dealing, terrorist funding, money laundering, and corruption.
“The tax amnesty law can only repatriate 60 percent of the total amount,” Agus said, adding that the amount of fund to be repatriated would reach Rp 560 trillion (US$42.4 billion) and generate Rp 47.5 trillion (US$3.6 billion) in tax revenue.
During a hearing with House of Representatives’ Commission XI that oversees financial affair, National Police’s general supervision inspector Comr. Gen. Dwi Prayitno said that the tax amnesty draft bill could conflict with laws on money laundering and taxation. Dwi referred to article 22 paragraph 2 and article 3 restricting information disclosure from taxpayers who requested for amnesty. Dwi believes that the regulation could hamper efforts to trace assets hidden overseas.
“We need a mechanism to prevent bad intentions and abuse of authority,” Dwi suggested.
Corruption Eradication Commission deputy chief Alexnder Marwata called on the government to prevent the tax amnesty draft bill from being used as a tool to launder corruptors’ assets. Alex reminded that 10 percent of the total amount of fund saved in tax haven countries was generated from corruption acts.
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