Jakarta (ANTARA) - Director General of Taxes at the Finance Ministry, Bimo Wijayanto, stated that enforcement actions have been initiated against 38 out of 40 steel companies suspected of failing to meet their tax obligations.

"We have processed 38 [companies]," Wijayanto said in Jakarta on Tuesday.

Wijayanto explained that the enforcement process regarding the dozens of companies is still ongoing.

Regarding the potential state revenue that could be recovered, Wijayanto said he could not yet confirm the exact figure because the legal proceedings against the relevant taxpayers have not yet reached a final, binding verdict.

Wijayanto explained that companies currently under audit could proceed to the formal investigation stage if the evidence is deemed sufficiently strong.

However, criminal proceedings would not necessarily move forward if the companies chose to settle their obligations through the ultimum remedium mechanism.

"If the evidence is strong, it will proceed to investigation. But if they opt for ultimum remedium—meaning they are willing to pay for the state's financial loss and the associated penalties—then they pay, and the criminal case is not escalated," he said.

The Directorate General of Taxes (DGT) hopes that settlements via the ultimum remedium mechanism will be utilized more frequently so that companies can continue their business operations.

"The hope is for ultimum remedium, so they can keep their businesses running. Because with criminal proceedings, the fines can reach up to four times the amount owed," Wijayanto said.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa stated that the enforcement action against steel companies is part of a tax extensification strategy aimed at broadening the state revenue base by encouraging companies to fulfill their tax obligations.

He revealed that out of the 40 companies on the list, only one had been audited at the time he shared the information.

"Regarding the steel companies—I have a list of 40, and only one has been audited so far. We estimate that just from that one, there was a potential revenue leakage of Rp4–5 trillion," Purbaya said last Friday.

He stated that potential revenue from a single company could reach up to Rp1 trillion over three years.

Audits of these companies cover various tax obligations, including Income Tax (PPh), Value Added Tax (PPN), and tax obligations related to import activities.



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Translator: Bayu Saputra, Cindy Frishanti Octavia
Editor: Azis Kurmala
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