I genuinely believed that provided the price was above the NJOP (the value of the land for tax purposes) this was legal so I agreed.
Now I learn that this is not true and that you must declare the higher of the two prices (the real price or the NJOP price) to the notary and the tax office.
Now, of course, the buyer is upset because it means she will have to pay about another Rp25 million in tax and she is threatening to withdraw. Payment and the signing of all the agreements is due to happen tomorrow.
I want to be honest and pay tax on the true figure but don't want to lose my buyer. (It's not an easy property to sell).
If I declare a low price to the tax office, that will leave me having to hide hundreds of millions of rupiah.
However, I'm an employee not a businessman, so it's not easy to explain the presence of a lot of money all of a sudden in my account if I ever get checked by the tax office. (they sent me a letter last year about a mere Rp 13 million!!) Plus I worry that if the buyer likes to flaunt the rules , and gets investigated by the tax office a trail will lead from her to me.
I know the Indo tax office is probably not as smart as I'm thinking, but I like to sleep at night.
So that's why I'm turning to the forum. I reckon there must be a few wordly types here who might know 'ways' to do things