IT happened in 2002. A transportation entrepreneur in South Jakarta, just call him Fulan, was visited by three tax assessors. They showed an official tax inspection letter and asked if his company had been subjected to tax assessment. Fulan shook his head. Several days later, the assessors put the tax liabilities of Fulan’s firm at Rp4 billion.

Fulan was surprised: why was the tax burden so big? The assessors explained Fulan’s firm had faile