House to Question Darmin Over Wilmar Tax Case

Indonesia Finance

Tuesday, 18 May 2010 22:45

Written by Badai

The Tax Working Committee of the House’ Commission III is scheduled to hold hearing with the Bank Indonesia acting Governor Darmin Nasution, who is also former director general for taxation, next week. Apart from questioning him over tax case of retailer Ramayana founder Paulus Tumewu, the working committee also plans to question Darmin over alleged tax restitution irregularities received by Wimar International Limited Group.

“We will ask Darmin over a new tax case. We have received complaints from internal sources at the tax office related with tax restitution received by Wilmar International Limited Group,” Media Indonesia online quoted Bambang Soesatyo, a member of the Tax Working Committee who is also a Golkar Party faction member as saying.

Bambang said Wilmar was allegedly implicated in fictitious transactions among its subsidiaries, re-engineering financial reports and practicing transfer pricing among group of companies.

Bambang said through financial engineering, 72 companies of Wilmar received tax restitution (tax refund) amounting to Rp900 billion in 2008, up from Rp800 billion in 2007. “As for 2009, restitution is being examined and ready to be paid to Wilmar amounting to Rp1.9 trillion,” said Bambang.

Bambang was also among members of the House that initiated the move to set up special inquiry team to investigate the Rp6.7 trillion Bank Century bailout scandal. Majority of the House, including Golkar, voted the bailout to be a “wrong decision”. However, Golkar toned down its move to scrutinize senior government officials, including soon-to-leave office Finance Minister Sri Mulyani Indrawati, after President SBY ‘promoted’ Golkar chairman Aburizal Bakrie as the coordinator of coalition parties.

He said there were indications that Pontas Pane, the head of directorate for investigation of the tax office and Tjiptardjo, tax director general, played a role in the tax restitution payment process, which amounting to Rp3.6 trillion.

He said the Tax Working Committee will also discuss about alleged bribery worth Rp40 billion involving Indonesian unit of Wilmar Group, PT Wilmar Nabati Indonesia.

Wilmar today denied such allegations saying that Wilmar Indonesian units have always been “compliance” with the Indonesian prevailing laws. It also denied allegations that the tax restitutions were fictitious.

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