Rp1bn Land Buy ‘Loss’ Still to Be Made Up
DENPASAR ~ An unexplained loss of Rp1.06 billion on sales of land by Badung regency that raised audit questions does not appear to have repaid to revenue, according to the central government auditor, the CPC.
The land in question was acquired by the regency agency, Supa, from a private owner in 2004 and is the subject of a demand for Badung to pay land tax.
Auditors say the land was subject to unwarranted price mark-up at its 2004 sale to Badung, being offered to the local government at Rp25 million per are (100sq m) and finally sold at Rp15 million.
But according to land tax documents the land was worth only Rp5 to Rp6 million per are in 2007 and 2008.
Badung has told the CPC the nominated tax value of the land is representative for agricultural land in the area and that there have been no irregularities.
The 2004 sale to the Badung government was made by the then owner, named as I Sangri.
The regency has sought exemption from land tax on the land because it was a necessary purchase by the local government and will be sold at market rates.Filed under: Headlines