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Boss of Large Bali Supermarket Chain Gets Two Years Prison and US$1.72 Million Fine for Tax Evasion.


Bali News:
Click Image to Enlarge

(6/6/2009)

The commissioner of one of Bali's most well known supermarkets, Tiara Dewata was sentenced to 2 years imprisonment and fined Rp. 18.1 billion (US$1.72 million) on May 25, 2009, by the Denpasar District Court. The sentence handed down by the court was half of the prison time of four years demanded by prosecutors but an increase in the fine they sought in the final sentence of Rp. 8.1 billion.

The commissioner, Isak Soegiarto Teguh, was convicted of playing a key role in a scheme to help the large supermarket chain evade taxes.

If the fine is not paid by Tiara Dewata to the court the court will move to confiscate the companies assets. In calculating the fine, the court determined that the supermarket had evaded Rp. 6.01 billion in taxes and then multiplied that amount by a punitive factor of 3.

In making their ruling, judges determined that the defendant had filed false tax reports to the State and maintained two sets of books.

Both State Prosecutors and the Accused are unhappy with the sentence, with both parties stating they will appeal the court's decision.


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