TAX NEWS - JUNE 2010

Indonesia Tax: 40 companies allegedly involved in Gayus' taxation mafia

by Bagus BT Saragih, 02 June 2010 -- As many as 40 companies were allegedly involved in taxation mafia organized by former low-ranking tax officer Gayus Tambunan, National Police chief detective Comr. Gen. Ito Sumardi said Wednesday.

"Until today, we have investigated four of the companies. We have grilled witnesses from the companies as well as from the tax office," Ito said before a hearing with legislators at the House or Representatives.

When asked why the police had only probed four of the companies, Ito said it was due to their scale of priority. "It's difficult to thoroughly investigate all companies at the same time," he said.

Gayus has been named a graft suspect for illegally amassing Rp 25 billion (US$2.7 million) from tax payers.

However, the police indicated that Gayus saved more than Rp 500 billion in his bank account, allegedly taken from 40 companies.

When asked for confirmation, Ito refused to answer. "Not all the money in his bank accounts are from the companies. Part of it is also his own money," he said.