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JAKARTA - President Susilo Bambang Yudhoyono has ordered law enforcement institutions to "seriously" handle alleged mafia practices at the tax office following the finding of dubious money transfers to a tax officer's bank account.
The order followed the discovery of Rp 24.6 billion (approximately two million euro) that went to the bank account of young tax officer Gayus Tambunan. Yudhoyono told government officials attending a Cabinet meeting on Monday to "remove obstacles plaguing the development programs".
"I expect that law enforcement institutions, along with the Taskforce against Court Mafia, to seriously handle the issues and report to me the progress, while thinking about preventive measures we can take in the future," Yudhoyono said upon opening the meeting at the Presidential Office.
The President divided tax-related crimes into three, namely ignorance to pay taxes, embezzlement of taxpayers' money by tax officers, and collusion between taxpayers and tax officers to reduce the former' financial obligation. The third crime is more rampant than the other two, Yudhoyono said.
"We often call it kongkalingkong (conspiracy to commit fraud); an evil truce. A taxpayer is supposed to pay 100 percent of his obligation, and yet he only pays 60 percent of it (with the truce), some of the money is embezzled by tax officers, with only 20 or 30 percent of the real amount going to the state."
"Both have committed a crime and the country is the one that suffer from the loss ... I'm asking this to be disclosed, to be hunted and handled so that the country will no longer suffer from losses."
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