Finance Minister Pledges To Be Strict On Tax Evasion

Jakarta (Antara Bali) - Finance Minister Bambang Brodjonegoro said he would seek legal action against 2,000 foreign investment (PMA) companies allegedly failing to meet their tax obligations in the past 10 years.

"What is certain is that we would seek law enforcement against the PMA companies," the minister said here on Monday.

He said he would coordinate with the Capital Investment Coordinating Board (BKPM) to see the operational feasibility of the companies.

If the companies found to have evaded legal examination, steps would be taken to force them to settle for the long delinquent payments, he said.

"We already have data. BKPM needs only to check , whether they are  still registered  as PMA or not. Firm action would be taken  against tax evasion," he said.

Director of public relations of the taxation directorate general Mekar Satria Utama said the 2,000 PMA companies were suspected to have issued fake reports showing that they had suffered operating losses  that they were not required to pay taxes.

Some companies changed their names in order they would again could demand for tax allowance  and evaded payment of taxes  especially income tax, Satria said. (WDY)