Indonesian Tax Authority Cracks Down on Major Tax Evasion Scheme

Capture of Suspect in Massive Fake Invoice Scandal

The Directorate General of Taxes (DJP) has successfully apprehended a suspect involved in a significant tax evasion scheme through the issuance of fake tax invoices totaling Rp 170.29 billion. The suspect, identified as IDP, was taken into custody after failing to respond to multiple summonses from investigators.

Modus Operandi of the Tax Fraud

The fraudulent activity took place between 2021 and 2022, involving four companies: PT TNK, PT BKG, PT BTJ, and PT ANL. These entities were used to generate fictitious tax invoices that were subsequently sold to other companies at a certain percentage of the VAT value. The total state loss was estimated at Rp 170,292,549,923.

Legal Consequences

The suspect faces serious legal consequences under Article 39A of the General Provisions and Tax Procedures Law (KUP). If convicted, IDP could face imprisonment between 2 to 6 years and fines ranging from 2 to 6 times the amount of tax involved in the fake invoices.

Government's Stance on Tax Evasion

The DJP, in collaboration with the Police's Special Crimes Investigation Unit, demonstrated their commitment to combating tax evasion. Rosmauli, Director of Counseling, Services, and Public Relations of DJP, emphasized that the government will not tolerate tax fraud and will continue to enforce the law rigorously.