The Corruption Eradication Commission (KPK) has named Handang Soekarno, an official at the Finance Ministry's Directorate General of Taxation, and taxpayer Rajamohanan Nair, as suspects in their attempt to facilitate the latter to evade tax.

KPK personnel arrested them in a sting operation on Monday in Springhills Residence, Kemayoran, in Central Jakarta. Handang, an echelon three official, allegedly accepted US$148,500 in bribes from Rajamohanan, the president director of PT Eka Prima Ekspor Indonesia, in an exchange for an unlawful reduction of tax obligations.

"The bribe is allegedly related to the tax obligations needed to be paid by PT Eka Prima Ekspor Indonesia, which amounts to Rp 78 billion (US$5.8 million), " KPK chairman Agus Rahardjo told a press briefing at KPK Headquarters in Jakarta on Tuesday.

Agus added that based on the KPK's preliminary findings the bribe was part of the total commitment fee of Rp 6 billion (US$447,094).

The arrest comes amid efforts by the Finance Ministry to stabilize the country’s economy, which heavily relies on revenue from taxes. Finance Minister Sri Mulyani Indrawati has repeatedly pledged to reform the tax system to regain the people's trust, and in a bid to widen the country’s notorious low tax base.

"The nefarious deed committed by the suspects have betrayed the principles of good governance and honesty upheld in the taxation office," Sri Mulyani said. (fac/jun)

Source:
courtesy of THE JAKARTA POST

by The Jakarta Post

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