Case Response T2 18.docx

PT Jayaningrat is a packaged beverage manufacturing company that is 125 ml of fresh milk, 125 ml of fresh fruit, and carbonated drinks in plastic bottles. The company is the majority shareholder (30%) of Sung Ong Ltd., a beverage packaging factory located in Hong Kong, and owned by one of the majority shareholders (25%) of PT Jayaningrat, namely The Cik Sang (Chinese citizens). In addition PT Jayaningrat is also the majority shareholder of PT Kincir Agro, a fruit plantation company which is also owned by one of the majority shareholders (25%) of PT Jayaningrat, namely Pariman Widyo Broto. Taxpayer Identification Number as a taxable entrepreneur (TIN as business registered) PT Jayaningrat is 04.345.005.3-577.000, registered at KPP South Semarang, address of the office on Jl. Krakatau Radja No. 50 Semarang 50141, telephone number: 024 8777222, fax number: 024 8777223, email: [email protected], website: www.jayaningrat.com. The company conducts an audit of the financial statements (2017 auditors are KAP Kalimasodo and Partners, TIN: 01.345.005.3-500.001, with an unreasonable opinion), which are arranged on an accrual basis with the Accounting Package (AccPac) application, since 2014, after previously using excel application. PT Jayaningrat was established in 2009, with a factory and warehouse location on Jl. Sarman Tandu No. 100 - 103 West Semarang 50143. The president director of PT Jayaningrat is held by Hayam Pangestuti, who lives on Jl. Kyai Ampuh No. 20 Semarang 50141, telephone number: 024 8664251, fax number: 024 8664252. Mr. Hayam has the following family structure: wife Buana Sembadra, S.E, Ak., C.A., B.A.P, aged 35, owns a business called Public Accountant Fa. Buana Sembadra and Partners. Between Mr. Hayam and Mrs. Buana, he has agreed to sign a separate property agreement, Bu Buana's NPWP is 07.666.002.5066,000. The 2017 gross income earned by Mrs. Buana from a KAP business is Rp. 5,500,000,000 (consisting of a salary as a monthly accountant partner of Rp. 150,000,000, and the remainder comes from profit sharing, because Mrs. Buana has ownership of KAP Buana Sembadra Firm and Partners by 75%), while for 2016 he earned Rp2 per year. 750,000,000. Mrs. Buana also owns a dairy farm (inherited from her parents) along with 2 siblings, who are named Fa. Nandi Cattle Farm. In this effort Mrs. Buana had a 40% share, while two of her siblings, named La Ta Bramantyo and Eifelia Meutia, each 30%. Mr. Hayam also has a status as a civil servant lecturer at the Dampo Awang State University, with a monthly salary and allowance of Rp. 22,500,000. Pakuna's family has 4 biological children, namely: Denta Shesia (9 years old) in grade 5 elementary school, he is also a soap opera player (during 2017 gross income of Rp 150,000,000 (PPh article 21 was deducted by the employer)), Tuin Shania (9 years old, Denta twin), grade 5 elementary school, presenter Aneka Ria Anak on TV Semarang (in 2017 received a fee of Rp.50,000,000, - (PPh article 21 was cut by the employer), Deka Satrio (5 years) and Leipton Satrio (2 years) In addition, the family also raised 2 foster children, namely: Bolang Unggul (18 years), first semester student in the Department of Electrical Engineering UNDIP and Baling Uut (12 years), grade 6 elementary school, both appointed with adoption status and financed by full living, in the family Mr. Hayam also lived with Bino Laden (Mr. Hayam's father), retired Brigadier General of the Army,

age 65, widower with 2 children and 6 grandchildren, a monthly pension of Rp 10,000,000. Transaction records for 2017: 1. The Jamsostek premium borne by PT Jayaningrat's employees is Rp. 25,000, while the company costs Rp. 75,000. 2. Employee welfare costs consist of lunch Rp. 200,000,000 for all permanent employees, work clothes (owned by the company) Rp. 30,000,000, - including Rp. 10,000,000, - are uniforms for security (personnel allowances), and Rp. 60,000,000, polyclinic fees and treatment. 3. The composition of raw material for products is soft drinks: carbonated water, sugar, beverage base, sodium benzoate, 500 ml plastic bottle packaging, wax paper plaque branded as Gasa Cola, sold at a price of Rp. 17,500. The composition of packaged fruit drinks: fresh fruit (taste of mango, durian and orange), sucrose, vitamins, water, a pack of 125 ml thick plastic paper branded Gasa Vita, sold at a price of Rp. 10,500 per seed. The composition of fresh milk in packs: fresh cow's milk, sucrose, nonfat milk powder, chocolate powder, sodium stabilizer, chocolate aroma, pack of 125 ml thick plastic paper brand Gasasu, sold at a price of Rp. 10,500 per seed. 4. PT Jayaningrat takes a 30% profit percentage from the selling price per product seed. 5. The composition of product sales during 2017 is 50% of fresh milk in Gasasu packaging, 25% of Gasa Cola soft drinks and 25% of fresh fruit in Gasa Vita packaging. 6. Sales returns occur because the goods have passed the expiration date. 7. Sales discounts are given if the buyer allocates products for school children, and mass purchases per 1,000 pieces, with a 10% discount. 8. In the component of salaries, wages and employee benefits there is a rice allowance for all employees, in the form of money for the middle management level above Rp. 750,000,000, - in the form of rice for all permanent employees of Rp. 500,000,000 (per kilogram Rp. 5,000, -), and uniform allowance for office employees Rp. 100,000,000. 9. In insurance costs including life insurance for managers Rp. 50,000,000. 10. In the cost of electricity and water, there is a section used for the president director's official home facility of Rp. 100,000,000, - and the managers' mess is Rp150,000,000. 11. In the cost of the telephone there is a use to fill the hand phone credit of the president director for Rp.50,000,000. 12. In the cost of official travel there is a component of the employee's allowance Rp. 100,000,000 and for his family members Rp. 50,000,000. 13. In the warehouse and office rental costs including Income Tax Article 4 paragraph (2) Rp. 5,000,000. 14. In the LBT component and the levy consists of Rp. 4,500,000 for the land and building, and the rest are waste retribution and company retribution.

15. In the entertainment fee there is a banquet component with a business partner of Rp. 40,000,000, and with suppliers Rp. 30,000,000 which is not accompanied by a nominative list. 16. In the maintenance costs of fixed assets, there are components for the renovation of the director's official home and the manager's mess of Rp. 250,000,000. 17. The amount of loss on accounts receivable that is really uncollectible (since the bankrupt or debtor debtor) is Rp. 100,000,000 (has been legally legalized with proof of recognition of the deletion on the seal). 18. Container forklifts are business leases with option rights, signed on January 1, 2016. Rp 100,000,000 forklift acquisition costs. (rent per year, pay in advance, Rp. 75,000,000 - for 5 years). 19. Administrative tax penalties, due to late submission of VAT period tax return Rp 100,000, - and underpayment of Article 21 Income Tax Rp.10,000,000. 20. The bonds owned by PT Jayaningrat belong to companies that go public (PT Jasa Marga). 21. Fixed assets of factories that are sold because they are out of date, so they cannot follow the demands of business productivity, have a book value of Rp. 120,000,000. 22. The gift of a car from Bank S has been deducted by Income Tax Article 4 paragraph (2) of 25%. 23. Prizes of USD 1,000 as winners of healty food and beverage festivals in Singapore are subject to 30% income tax. 24. During 2017, PT Jayaningrat has paid Article 25 income tax amounting to one twelfth of the total 2016 PPh debt for the full 12 months, which is Rp. 1,000,000,000 per month. 25. In September and October 2017, the company exported packaged milk products directly to Brunei Darussalam valued at Rp. 2,000,000,000. 26. In June 2017, one of the company's production technicians was assigned to Myanmar to provide consultation for a factory there. The fee received is IDR 250,000,000 (gross value, before the PPh deduction in Myanmar is IDR 5,000,000). Then from the reward, IDR 100,000,000 was given to the employee sent as a bonus. 27. From the results of the board of directors meeting with PT Jayaningrat's commissioner on February 25, 2018, it was decided that a portion of the retained earnings (amounting to Rp 10,000,000,000) would be used to prepare internal acquisitions.