Embezzling VAT Deposits, Jakarta Special Regional Tax Office Handed Over Korean Citizens to South Jakarta Prosecutor's Office

Jakarta Regional Tax Office enforced tax crimes against Korean foreigners in collaboration with South Jakarta Prosecutor's Office. Civil Servant Investigators (PPNS) of Jakarta Regional Tax Office had delegated responsibility for the suspect KNM alias NHM alias DK, a South Korean citizen, and the evidence to the South Jakarta Prosecutor (Thursday, 15/12). 

The Head of Jakarta Regional Tax Office, Irawan, in a press release said that “The suspect KNM alias NHM alias DK committed this crime at the office of PT. CSI during February 2018 s.d. December 2018 regarding Value Added Tax (VAT). PT CSI is registered as a taxpayer and submits SPT at the Foreign Investment Tax Office III." 

PT CSI is a company engaged in information technology with products such as CCTV, smart building office, and cybersecurity services. The suspect, KNM, is the director of the company. 

As for the operating mode used, PT CSI conducted sales transactions/delivery of Taxable Goods (BKP)/Taxable Services (JKP) in the form of smart building offices to PT SCC and PT PI. Upon this submission, PT CSI had issued a tax invoice and collected 10% VAT. However, PT. CSI did not submit Periodic VAT returns and did not deposit them in the State Treasury, resulting in state losses. 

For the actions of the suspect KNM alias NHM alias DK, the state losses incurred reached 5 billion. As a result of his actions, the suspect KNM is subject to imprisonment for a maximum of 6 (six) years and a fine of a maximum of 4 (four) times the amount of tax payable that is not paid or underpaid as referred to Law Number 6 of 1983 concerning General Provisions and Tax Procedures as last amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations. 

The Head of the Special Jakarta DJP Regional Office, Irawan, appreciated the performance of the investigators who had processed this case. Irawan hopes that this law enforcement effort will provide a deterrent effect for the perpetrators. "This is done to implement the principle of justice and to create a deterrent effect as well as an effort to secure tax revenues," he said.