BCA Says It Violates No Tax Regulations

Jakarta (Antara Bali) - PT Bank Central Asia Tbk. (BCA) had claimed that the company had violated no laws or tax regulations in connection with its tax in 1999.

"BCA as a taxpayer had met its obligations and implemented its rights through correct procedures and the tax system in line with the existing tax regulations," BCA president director Jahja Setiaatmaja said at a press conference here on Tuesday.

Former State Audit Board (BPK) chief Hadi Purnomo was named as a suspect on Monday by the Corruption Eradication Commission (KPK) for allegedly abusing his power, while he was tax director general in 2002-2004, to accept the tax objection submitted by BCA that led the state to lose up to Rp378 billion.

Jahja explained that in 1998, BCA suffered a fiscal loss of Rp29.2 trillion due to an economic crisis that occurred in that year.

Based on the existing law, the loss can be compensated for with tax loss carry forward starting the next tax year until five years.

Starting from 1999, BCA started booking a fiscal profit of Rp174 billion, he said.

Based on the tax assessment in 2002, the tax directorate general corrected the fiscal profit of 1999 into Rp6.78 trillion.

In total, he explained, there was correction relating to asset transfer, including a guarantee worth Rp5.77 trillion for the purchase process with the National Bank Restructuring Agency (BPPN) put in the purchase and receivables agreement.

"It was done in line with the instruction of the finance minister and Bank Indonesia governor dated on March 26, 1999." Jahja remarked.

He further explained that the asset transfer transaction was a purchase of receivables, but the directorate general of tax considered it as a transaction to write off bad debts.

With regard to it, the BCA on June 17, 2003, filed an objection letter to the directorate general of tax over the tax correction, which was received by the office and put in the decision letter SK No.KEP-870/PJ.44/2004 dated June 18, 2004.

Jahja said by the end of the period of 1998 tax loss compensation there was still compensation left that had not been used amounting to Rp7.81 trillion.

So, if the BCAs objection over tax correction worth Rp5.77 trillion was not accepted by the directorate general of tax there was still tax loss carry forward that can be compensated for totaling Rp2.04 trillion.

"The tax loss carry forward left can no longer be used after 2003," he said. (WDY)