JAKARTA, April 22 Indonesia's PT Bank Central
Asia (BCA) on Tuesday said it has adhered to all tax
procedures, after the anti-corruption agency began investigating
a former tax official in relation to an exemption granted to BCA
around a decade ago.
The Corruption Eradication Commission (KPK) late on Monday
said it is investigating outgoing audit agency chief and former
director general of tax Hadi Poernomo, who granted the
BCA, the country's biggest bank by market value, was the
only one of several banks to receive an exemption after filing
objections to the tax office, according to local media.
"BCA has fulfilled all obligations and carried out its
rights through tax procedures and steps that are correct and in
line with the prevailing tax regulations," BCA Chief Executive
Jahja Setiaatmadja told reporters at a briefing.
Local media recently reported the exemption cost the state
375 billion rupiah ($32.8 million).
"In our records there is no such number," Setiaatmadja said.
Shares of BCA fell as much as 2.5 percent on Tuesday,
compared with the broader Jakarta Stock Exchange index,
which was 0.1 percent higher.
If the tax office rescinded the exemption, BCA could face a
total tax bill of 555 billion rupiah, said Maybank Kim Eng in a
research note. That would amount to 3.5 percent of the
brokerage's 2014 net profit forecast for BCA of 16.1 trillion
"This might hurt sentiment in BCA stock as it creates
uncertainty on how the case will evolve over time and given the
high premium BCA carries versus the banking sector," the
($1 = 11,445 rupiah)
(Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata;
Editing by Christopher Cushing)