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Indonesia audit watch reports alleged tax evasion by mining firms to Mahfud Md

Tempo - April 13, 2023

Tika Ayu, Jakarta – Indonesia Audit Watch (IAW) submitted a report to Coordinating Minister for Political, Legal, and Security Affairs Mahfud Md regarding alleged tax evasion by a mining company that allegedly involved the gratification case of former taxman Rafael Alun Trisambodo.

"Our letter has just been received by Mahfud Md at the Coordinating Ministry's administration unit," IAW Secretary Iskandar Sitorus said on Thursday, April 13.

Iskandar explained there are 50 mining companies involved in tax evasion. IAW observed that there are two modus operandi. "First, regarding tax evasion of PT BS, a company owned by S, who is the wife of a high-ranking official, which reaches almost Rp2 trillion," he said.

The second modus operandi, according to him, is that mining companies always manipulate and avoid the amount and source of money for production. "So they covered up working capital and didn't disclose it, while in fact, it is their right and obligation to return it to the country," he added.

Iskandar hoped that Mahfud Md could investigate the two modus operandi of avoiding the mining tax. IAW has observed that since 2016, there have been extraordinary changes in the Indonesian mining sector, especially the change of capital owners from community A to community B.

Iskandar said that Rafael Alun Trisambodo's role in the case was allegedly through data manipulation of mining tax sanctions, where mining companies generally have bad tax records.

"We hope that Pak Mahfud can launch an investigation. If Pak Mahfud has time to discuss this [tax evasion case], we will prepare it," he concluded.

Source: https://en.tempo.co/read/1714704/indonesia-audit-watch-reports-alleged-tax-evasion-by-mining-firms-to-mahfud-m