Supreme Court rejects tax office appeal against KPC

Supreme Court upheld a verdict ordering the Directorate General of Taxation to drop an investigation against East Kalimantan coal miner PT Kaltim Prima Coal (KPC), a unit of Indonesia-listed mining house PT Bumi Resources.

The Supreme Court in its verdict released on May 24 rejected an appeal filed by the directorate general who claimed that KPC lied about its tax amount, causing it to lose Rp 1.5 trillion (1US$ = Rp 9,280) in potential tax revenue from the firm.

In February 2010, the directorate general filed an appeal with the Supreme Court in a tax dispute with KPC after the latter filed a petition at the South Jakarta District Court to stop the investigation over the company?s alleged tax evasion. (denny)