I'm working today, for the money of course, so you'll have to make do with tales of greed related by other local expats.Check out Avi
for his take on the massive ripoffs being perpetuated by the Tax Office in collusion with business men.These businesses obtain fake documents for exported shipments that do not actually exist or for containers that have been exported containing no cargo at all. Somehow they hold the actual Bills of Lading and export invoices valued as high as $100,000 or more. With this in hand they are able to process the documents through the tax offices to receive a VAT (Value Added Tax) rebate.
The process is made even easier when you have corrupt officials who approve your rebates without any hassle. How much could they possibly be making with such a simple hustle? The current audit is for Rp.19 Trillion or US$2.02 Billion paid out in 2005 alone!!! US$ 2,020,000,000.00 that's a shit load of zeros mate.
Fellow blogger, who usually says Blame It On The Traffic
, has a more personal tale of woe.Recently I bought a (one, single, satu) used golf club online to complete a set of clubs I've been putting together. Given that the price of the very same item new in Jakarta golf shops is $300, I did my sums and decided that buying used for $80, adding $20 for shipping and taking into account the 50% import duty on golf equipment, for around $150 all up I'd be doing ok.Imagine my surprise and consternation (actually, I was rather pissed off) when the customs invoice I received was for $430. Yes, import duty and taxes on a used item that cost $80 were calculated at $430. WTF?
Read on for how the customs officer got his comeuppance, and not his 'tuppence'.