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Spot audits for the rich

Source
Straits Times - June 22, 2001

Robert Go, Jakarta – It is getting harder to hide the extent of one's wealth in Indonesia these days. Tax collectors, under pressure from their bosses at the Finance Ministry, are stepping up on-the-spot audits. They are directing their activities towards rich neighbourhoods whose inhabitants are likely to display their high-class consumption.

Mr Nono Hanafi, a tax-directorate spokesman, said: "We are looking at the lifestyle and whether it fits the declared income. If you drive big cars, live in big areas and make big purchases, we want to make sure you have paid your taxes."

Government officials had so far looked at Jakarta's richest areas, such as Menteng, Pondok Indah and Permata Hijau. But Mr Nono spoke of plans to expand the operation to middle-class areas, where many expatriates live. "People in other areas will receive requests soon to provide documentation. If they can't give complete information, they should register before our officers get to their areas," he said.

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