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NEWS UPDATES Asean Affairs    7 April  2016  

Investment board warns foreign companies over tax avoidance

Indonesia’s Investment Coordinating Board (BKPM) is warning it will annul the investment permits of foreign companies that are proven to be avoiding payment of taxes.

"We are ready to revoke the principal licenses, but to prove a transfer pricing, as a tax-avoidance practice, is not the BKPM's job. It is the tax office that will hold the investigation, then deliver the results to the BKPM," chairman Franky Sibarani told on Monday in Jakarta.

Previously, Finance Minister Bambang Brodjonegoro said there were about 2,000 foreign investors who had avoided their tax liabilities in the last 10 years by declaring losses or changing names to get new tax allowances. The practices led to Rp 500 trillion (US$38 billion) in state losses.

By revoking principal permits, Franky said, all the following licenses would automatically expire. However, a company with a revoked permit could retain its assets under its name, but could not utilized them.

"They will have to sell the assets," he said, underlining that those 2,000 companies were on a list of foreign firms that committed the worst cases of tax avoidance.

Some milder cases were settled through mediation. "For these cases, we will help the foreign investors in mediation. We want them to continue operations," Franky said.

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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






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