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579 Badung Hotels and Restaurants Tax Delinquent

Many Bali Hotels and Restaurant Failing to Remit 11% Development Tax.

(5/24/2010) Radar Bali says that 579 hotels and restaurants in the Badung regency of Bali are suspected of having misappropriated the 11% development tax applied to all hotel and restaurant bills. As a result, officials estimate some Rp. 87 billion (US$8.53 million) is at risk.

The Secretary of the Badung Tax Service, Anak Agung Gede Arimayun, told the press that of the 1,615 hotels and restaurants registered in the regency as potential tax object, 896 are listed as hotels and 719 as restaurants.

From the 896 hotel on the tax roll 524 (58%) have outstanding tax bills with 55 (6%) more are listed as bankrupt. 465 (64%) of the 719 restaurants are also in tax arrears. Meanwhile, 221 restaurants are now listed as bankrupt.

The failure of the hotels and restaurants to pay the 11% hotel and restaurant tax represents a mis-allocation of money collected from the public which should, according to law, be set aside and paid in the shortest possible period to tax authorities.