Deliberately Not Reporting SPT, Entrepreneurs in Bali Sentenced to 2 Years in Prison and Fines of IDR 2 Billion

DENPASAR - The Regional Office of the Directorate General of Taxes (DJP) Bali said that businessman Kamim Tohari (KT) was sentenced to two years in prison and a fine of IDR 2.18 billion by a panel of judges at the Denpasar District Court. The defendant was proven to have deliberately failed to report the Annual Tax Return (SPT).

"According to the decision of the Denpasar District Court Number 62/Pid.Sus/2023/PN Dps, it was stated that the defendant KT was proven legally and convincingly guilty of committing a crime in the field of taxation", said the Head of the Bali DJP Regional Office, Nurbaeti Munawaroh, in a written statement, Wednesday, April 12.

The Denpasar District Court on Tuesday April 11 sentenced KT (50) to two years in prison and a fine of twice the amount of IDR 2.18 billion in state losses.

KT is the person in charge of CV RJ which is engaged in the business sector cut and fill which is registered at the Pratama South Badung Tax Service Office (KPP).

Previously, he was demanded to be jailed for three years and fined twice the amount of state losses for his criminal acts in the field of taxation.

KT deliberately fails to submit Periodic Value Added Tax (VAT) Annual Returns (SPT) and/or intentionally submits Periodic VAT Returns and/or information whose contents are incorrect or incomplete and/or intentionally fails to deposit VAT that has been deducted or collected from January 1, 2015 to March 31, 2016.

In accordance with Law Number 7 of 2021 concerning Harmonization of Tax Regulations (hereinafter referred to as the KUP Law) in the period 1 January 2015-31 March 2016 so that it can cause losses to state revenues of at least IDR 1.09 billion.

Nurbaeti explained that this case was previously handled by Civil Servant Investigators (PPNS) of the Regional Office of the Directorate General of Taxes (Kanwil DGT) Bali. In handling tax criminal cases, the principle of ultimum remedium is always put forward.

Previously, the Bali DJP Regional Office through the South Badung KPP Pratama had conveyed an appeal to KT regarding the reporting of their tax obligations.

During the initial evidence examination process (investigation), KT has been given the right to reveal the untruthfulness of the act as stipulated in Article 8 paragraph (3) of the KUP Law.

During the investigation process, KT was given the right to apply for an termination of the investigation as referred to in Article 44B paragraph (1) of the KUP Law, but this right was not used and KT was found to have not carried out its tax obligations properly and correctly.

Investigators then named KT as a suspect and transferred it to the Badung District Attorney's Office on January 18 2023, then detained at the Denpasar Class IIA Penitentiary for 20 days from January 18 2023 to February 6 2023.

"The Denpasar District Court decision also states that if the defendant does not pay the fine no later than one month after the court decision obtains permanent legal force, then his property can be confiscated by the prosecutor and then auctioned off to pay the fine", she said.

In the event that the assets are not sufficient, then the defendant is sentenced to imprisonment in lieu of a fine for three months.

According to Nurbaeti, the success of the Bali Regional Office of DJP in handling this crime is proof of the seriousness of law enforcement in the field of taxation.

At the same time, this is a form of good coordination between law enforcement officials that has been carried out by the Bali DJP Regional Office, the Bali Regional Police, and the Bali High Court.

"It is hoped that this law enforcement process will create a deterrent effect on taxpayers so that they always carry out their rights and obligations according to applicable regulations", she said.

In addition, Nurbaeti appealed to taxpayers to comply with SPT reporting, tax payments, and if there are tax arrears so they can pay it off immediately and coordinate with the relevant KPP.