Villas Told to Stand By for Tax Raids

DENPASAR

Bali villas, already the target of a crime wave by home invasion-style robbers, may soon be getting surprise raids from other quarters – police, the Bali Villa Association and local community leaders to ensure their papers are in order.

The unannounced raids by “sweeping teams” will be aimed at closing down unlicensed premises and ensuring licensed villas are meeting safety and other requirements, including tax payments.

Bali Police spokesman Gede Sugianyar said many unlicensed villas had been the target of robberies.

Licensed villas, hotels and private homes are required file a report with the police every time a new foreigner arrives to stay. Failure to report within 24 hours carries a fine of up to Rp5 million (US$552) and a one-year jail term for the owner.

Sugianyar said every police sector station has copies of the form needed for registering the stay of foreign guests in hotels, villas and private homes.

The BVA also plans to publish an official directory of legally registered tourism accommodation this year as part of its effort to curb illegal villas.

Its chairman, Ismoyo S. Soemarlan, said the BVA had reached an agreement with the Bali Hotel Association (BHA) to prepare the directory.

Ismoyo, who blamed illegal villas for lowering service and security standards, said this week only around 500 of the estimated 900 villas in Bali had formal operating permits.

Only 50 licensed villas existed in 2006.

Total villa tax revenue has grown threefold since 2006. In 2010 the government collected Rp100 billion ($11 million) in tax from 500 legal villas (that’s around Rp20 million or $2,200 a villa). In 2006 only Rp25 billion ($2.7 million) was collected.

Filed under: Headlines

One Response to “Villas Told to Stand By for Tax Raids”

  1. Mark Ulyseas Says:

    Terimah Kasi Bali Police spokesman Gede Sugianyar. This is a very thoughtful gesture but not good enough to catch the “real” culprits who evade taxation and cause millions of dollars loss to the exchequer.
    Here is a quote of my letter to the Editor of this paper and the link –

    “Apparently (some) buyers are hell bent on circumnavigating the law to purchase a piece of paradise. They are so desperate that they even buy land in the name of a local believing that this is Camelot. In this way, millions of dollars are invested in real estate in Bali and registered in the names of drivers, house help and sometimes dead persons.”
    http://www.thebalitimes.com/2011/01/31/building-trust/

    The authorities must get to the “real” owners to recover and prosecute those that have deliberately caused a loss of revenue to the Bali Government.

1