Palm oil king’s savings plan

Palm oil king’s savings plan, from Tempo Magazine, 1/07 

akrobat-pajak

 

 

 

 

 

 

 

Not all bosses are happy with the high tax burden. If it can be reduced, why not? It could be, that’s what is on the minds of the officials Raja Garuda Mas. In order to “downsize”, Tanoto, the owner of this business group, through its core team in the Asian Agri Group Annual drafting of tax payments (tax planning) for deposits to the state minimum. “Saving package” that, among others, performed by transferring profits from dozens of plantation companies in Indonesia to overseas affiliates. 

There are three modes: 

1. Fictitious COST
modes of operation: Created various types of costs in dozens of fictitious Asian Agri Group subsidiaries, called Jakarta Cost (building roads, cleaning lawns, contractors, etc.). Costs not really paid, but deposited into a personal account under the name of Haryanto Wisastra / Luke Eddy (HAREL) and Luke Eddy / Djoko Oetomo (ELDO). Subsequently the money were transferred to Tanoto’s overseas investment company (offshore company). 

2. HEDGING FICTITIOUS TRANSACTIONS 
modes of operation:
* Created transaction hedging contracts / hedging (forward contract) CPO sale or exchange between the Asian Agri Group company in Indonesia with affiliates abroad. This allegedly fictitious transactions was backdated. 
* Transactions are made ​​in such a way (an Indonesian company selling at a low price and buy at high prices, otherwise foreign companies selling at a high price and buy at low prices) so that the Indonesian companies always losses and company abroad is always profit.Consequently, there is a transfer of money from Indonesia to overseas companies. 

3. TRANSFER PRICING 
modes of operation:
CPO was sold at low price to affiliated (fictitious) companies in Hong Kong, British Virgin Islands, Macao. From this fictitious company, the CPO was sold at a higher (market) price to real buyers. By doing so, they are free from paying higher taxes in the country. Before 2003, the transaction directly through BVI companies, but since 2003 by companies in Hong Kong and Macao. 

Examples of transactions: 

Transaction 1: October 2004 

a. PT Inti Indosawit Subur sell 3500.34 metric tons of CPO to Twin Bonus Edible Oil & Fats Ltd. (Hong Kong) for U.S. $ 370/MT or worth a total of U.S. $ 1,295,125.8 (Invoice No.. 10018/I/10/02/04) 
b. Double Bonus CPO selling it to Global Advance (Macao) for U.S. $ 372.5 / MT valued at a total of U.S. $ 1,303,876.65 (Invoice No.. 101 052 908 Twin-I). Gains recorded U.S. $ 8,750.85. 
c. Global Advance (Macao) and then sell it to the CPO M / S Manickam Enterprises (India) with a price of U.S. $ 444.5 / MT valued at a total of U.S. $ 1,555,901.13 (Invoice No.. GAO/410/16-03210101). Gains recorded U.S. $ 252,024.48 

Transaction 2: October 2005

a. PT Supra Matra Abadi sell 2500 MT palm kernel oil (PKO) to Twin Bonus Edible Oil & Fats Ltd. (Hong Kong) at a price of U.S. $ 460/MT or worth a total of U.S. $ 1,150,000 (Invoice No.. 09602/I/21/14/05). 
b. Double Bonus PKO then sell it to Asian Agri Eternal Oils & Fats Ltd. (BVI) at a price of U.S. $ 462.5 / MT valued at a total of U.S. $ 1,156,250 (Invoice No.. 09,138,005 TWIN-I). Gains recorded U.S. $ 6,250. 
c. AAAOF (BVI) and then sell PKO to Palmco Oil Mill Sdn Bhd. (Malaysia) for U.S. $ 535/MT or worth a total of U.S. $ 1,310,750 (Invoice No.. 10001/I/95/14/05). Gains recorded U.S. $ 154,500. 

Transaction 3: August 2001 
a. PT Inti Indosawit Subur sell 999.3 metric tons of crude palm oil to Asian Agri Eternal Oils & Fats Ltd. (BVI) for U.S. $ 192.5 / MT or U.S. $ 192,365.25 (Invoice No. 004/E/IIS-JB/08/01) 
b. AAAOF (BVI) to sell 999.3 metric tons of CPO to Cargill (Singapore) for U.S. $ 220/MT or U.S. $ 219,846 (Invoice No.. 23,108-SCPO / I). AAAOF profit from this transaction (BVI) of U.S. $ 27,480.75 

Sukanto Tanoto setup paper (Mailbox) Companies in order to perform a variety of transactions abroad, in Tax Haven countries: Hong Kong, British Virgin Islands, and Macao. These companies are just mailbox companies, because: 
1. In a Hong Kong staff just placed the phone receiver. The phone number is different, but the fax number using the same line East Trade Ltd hunting. at 2701 Gloucester Tower, The Landmark, Hong Kong. 
2. Authority signature for the bank accounts in Hong Kong and Macao are the same. 
3. Of the audit report in Hong Kong known before 2004, these companies were non-active. In fact, in the report Asian Agri Group reported almost all palm oil exports are sold to Hong Kong companies. Presumably, these are one-sided transactions, not reported income in Hong Kong. 

The fake mailboxes companies that Sukanto Tanoto used are:1. Good Fortune Oils and Fats Ltd.. (Hong Kong) 
Suite F, 10 / F, Ho Lee Commercial Building, 38-44 D’Aguilar Street, Central Hong Kong 
Tel: 2810-7886 
Bank / Account: Standard Chartered Bank Hong Kong 
Acc. 317-0029751-6 (U.S. $) ,  317-0-032781-4 (HK $). 
Telephone receiver: Mr. Gary Cheung 

2. Twin Bonus Edible Oil & Fats Ltd. (HK) 
Suite 2306, Henley Bldg, 5 Queen’s Road Central, HK Tel: 2529-3861 
Bank / Account: United Overseas Bank Ltd.. Hong Kong 
Acc. 081-309-829-5 (HK $), 081-905-182-7 (U.S. $) 
Telephone receiver: Ms. Maureen Lai

3. United Oils and Fats Ltd.. (HK) 
Flat A, 15 / F, Shun Pont Commercial Bldg, 5-11 Thomson Road, Wanchai, HK 
Tel: 2866-2971 
Bank / Account: Industrial & Commercial Bank of China (Asia) Ltd.. Hong Kong 
Acc. 702-010-013988 (HK $), 702-056-001617 (U.S. $) 
Telephone receiver Ms. Sandy Cheung 

4. Ever Resources Oils and Fats Industries Ltd.. (HK) 
Room 1601 Wing On Centre 111 Connaught Road Central Hong Kong 
Tel: 2525-3511 
Bank / Account: Standard Chartered Bank Hong Kong 
Acc. 317-0029752-4 (U.S. $),  317-0-032782-2 (HK $) 
Telephone receiver Ms. Vickie Ng 

5. Global Oils and Fats Advance Commercial Offshore Ltd.. (Macao) 
Bank / Account: Fortis Bank (Hong Kong) 
Acc. 803239-1211 Fortis Bank (Hong Kong) 
Acc. * 803239-13212 
Signed by Sukanto Tanoto 

6.Asian Agri Oils and Fats Ltd Abadi. (BVI) 
Bank / Account: Fortis Bank (Hong Kong) 
Acc. 8013401211/511 Fortis Bank (Singapore) Rec. 
Signatories 8004330101 Tinah Bingei (Tanoto wife), Djoko Oetomo 

7. Talent Investment Ltd.. (Mauritius) 
Bank / Account: HSBC (Mauritius) 
Acc. 080-074586-020 Barclays Bank plc. (Mauritius) Rec. 8025097 
Account Signatory  Tinah Bingei 

Signatory 1-5 ​​corporate accounts are the same, namely: 
A. Tan Wei Lin, Tsang Shui Yuen, Roger Lai Yin Man, Maureen, Pul Wah Cheong, Doris 
B. Chau Kin Sing, Francis Leung Suk Yee, Carmen

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: