REPUBLIKA.CO.ID, YOGYAKARTA -- The Yogyakarta office of the taxation directorate general (DJP) would move against tax evasion in that district immediately after the end of the tax amnesty program on March 31 this year. "We have coordinated with police, the military and the prosecution office to go against tax defaulters after the March 31 deadline," head of the Investigation, Collection and Intelligence and Education of the Yogyakarta DJP Fajar Adi Prabawa here on Thursday.
The Yogyakarta DJP has also coordinated with the regional Justice and Human Right Office, Fajar said. "We have prepared a detention cell for delinquent tax payers to give them a deterrent effect. We will set them free after they settle their tax obligation," he said.
The tax offenders will be punished with heavy penalty. He said the Yogyakarta DJP has watched 10 alleged tax evaders who failed to take part in the tax amnesty program until the third and last phase.
The tax amnesty program is divided into three phase - first from July to September, 2016 with tax penalty of 2 percent, second from October to December, 2016 with tax penalty of 3 percent and the last phase from January to March 2017 with penalty of 5 percent. "Immediately after the end of the tax amnesty program we would issue an order for investigation of the 10 tax payers," Fajar said.
The government has repeatedly warned tax payers that in 2018 Indonesia would adopt the Automatic Exchange of Information (AEOI) under which all bank accounts in the world would be accessible for investigation of taxable assets, making it difficult for tax evasion.