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Indonesia coal mines caught in tax manipulation

The Supreme Audit Agency (BPK) has found a 78 percent deficit in tax settlements from the coal mining sector.

Previously in 2013, BPK disclosed that 24 large and 17 small coal mining companies manipulated their production reports in order to avoid high tax invoices from the government.

“In 2013 the state experienced a loss of up to Rp 628 billion [US$515,000] from the coal mining sector,” a member of BPK, Ali Masykur Musa, said in Palembang on Thursday.

The coal mining sector conducted three types of tax manipulation, according to Ali. Namely, these were: falsifying production reports; making subsidiaries responsible for the quality of products; and manipulating the amount of exports through customs.

Source: The Jakarta Post