Tax office takes KPC case to Supreme Court

The Directorate General of Taxation has filed an appeal in the Supreme Court in a tax dispute with Kaltim Prima Coal (KPC) after the latter filed a petition at the South Jakarta District Court to stop the investigation over the company?s alleged tax evasion, Tempo Interaktif reported.

Fendy Dharma Saputra, head of the sub-directorate of legal aid at the tax office, said in Jakarta on Tuesday that the tax office filed the appeal on Jan. 29 against the tax tribunal?s recent ruling which annulled the preliminary evidence as the basis of the directorate general to carry out investigation.

?Basically, we see the tax tribunal has used a wrong consideration in its decision to revoke the preliminary evidence as the basis of the investigation,? he said, adding that despite the tax tribunal?s ruling, the instruction to carry out investigation against KPC?s alleged tax evasion is still valid.

The tax office suspects three firms linked to the Bakrie Group have evaded taxes amounting to Rp 2.1 trillion (1US$ = Rp 9,350). The companies are KPC, PT Arutmin Indonesia and PT Bumi Resources Tbk.

The tax office recorded that KPC allegedly owes the biggest tax shortfall of Rp 1.5 trillion, while Bumi is said to owe Rp 376 billion and Arutmin is said to owe Rp 300 billion.

The tax office is investigating this allegation, but KPC says the tax office has botched its procedures. (*)