0 VP urges judicial leniency for whistle-blowers in tax fraud cases

Vice President Boediono has called on the country’s court system to lower the sentence for government officials who act as whistle-blowers in tax fraud cases. Boediono said that tax officials providing inside information on fraud was one of the most effective ways to curb the problem. “Justice collaborators and whistle-blowers are very important in uncovering tax misappropriation. We will provide incentives for those who can help investigators dig deeper,” Boediono told a press conference at his office on Tuesday. 

The Vice President, however, said there should be stringent conditions for individuals to be granted whistle-blower status. “We must apply tight conditions for those who are eligible to get the privilege. Those who refuse to collaborate [with investigators] must be exempt from the system,” he went on. Boediono held a meeting on Tuesday to hear progress on the implementation of the 2011 presidential instruction on the acceleration of the settlement of tax cases. 

Also present at the meeting were Coordinating Political, Legal and Security Affairs Minister Djoko Suyanto, Law and Human Rights Minister Amir Syamsudin, Attorney General Basrief Arief, National Police chief Gen. Timur Pradopo, and Presidential Working Unit for Supervision and Management of Development (UKP4) head Kuntoro Mangkusubroto. President Susilo Bambang Yudhoyono issued the presidential instruction in January 2011 following the disclosure of the massive tax fraud committed by former tax official and current graft convict Gayus H. Tambunan. 

Gayus was at the center of a series of scandals that implicated dozens of individuals in criminal conspiracies in 2010, including a sitting judge, police detectives investigating his case, prosecutors, his fellow tax collectors, several executives from companies whose taxes he assessed and even his guards at the Mobile Brigade’s (Brimob) detention center. Gayus has been sentenced to a total of 26.5 years in prison for a host of crimes. The government has also formed a team specially tasked to delve into the alleged massive tax fraud committed by Gayus. 

The investigative team discovered that tax officials misappropriating and colluding with corporate tax payers had cost the state at least US$122.23 million. The collusion was mostly carried out by corporations that had tax disputes with the government and underwent hearings at the tax tribunal, Boediono said. The Finance Ministry has imposed penalties on 22 tax officials found to have committed violations and colluded with corporate taxpayers. Of the 22 cases, the Corruption Eradication Commission (KPK) launched an investigation into two irregularities. 

“I think this team has performed well and it has run in smooth coordination with relevant parties in carrying out its duties. One other party that has been very supportive is the Supreme Court,” Boediono said. He also welcomed a recent ruling by the Supreme Court that found agribusiness giant Asian Agri Group guilty of tax evasion. The court ordered the firm to pay Rp 2.52 trillion (US$258.5 million) in fines and sentenced its former tax manager, Suwir Laut, to two years in prison in one of the most controversial tax evasion cases in the country. 

Finance Minister Agus Martowardojo has applauded the Supreme Court decision, saying that it was all made possible because of whistle-blowers. “The whistle-blower gave effective information that could later be used by the Supreme Court in its consideration to rule in our favor,” he said.

source : the jakarta post