The INVESTIGATION OF TAX DISPUTE IN INDONESIA (original) (raw)

Reformulation of Tax Dispute Resolution in Indonesia

Journal of Law, Policy and Globalization, 2017

The researcher focuses on research the tax disputes arising from the issuance of tax assessment (SKP) central taxes administered by the Directorate General of Taxation, Ministry of Finance. Authors interested in researching tax dispute considering in the last decade there was an increase in the number of tax disputes that the dispute is highly significant, if in 2005 there were only 2,613 files received into the Tax Court, in 2015 tax disputes paid were 12.486 files [1] , or it increases more than fourfold. There should be a solution for the increase of number of tax disputes that is very significant to avoid the accumulation of case with a very great number of case that in the end will be difficult to resolve by the Tax Court, so that the settlement of disputes in the form of decisions that provide justice for the parties of lawsuit cannot be determined immediately, it is contrary to human nature that crave the justice.The arrangement of tax dispute resolution, it is done in stages...

Tax Evasion and Violation of Human Rights: The Case of Indonesia

Journal of Arts and Humanities, 2019

This article discusses the issue of tax collection from the public in order to finance state administrators in carrying out their duties to create a society that is just, prosperous, spiritual and material. However, the implementation of tax collection is highly loaded with the contents of the political interests of the authorities. As a result, tax less redistributed to the benefit of public as taxpayers. The good and bad of tax policy cannot be separated from the political will of the government because tax policy is a political product of the ruling government, even though in reality it is not entirely legal as a political product but partly a social, cultural, economic and legal product. Interest has a very close relationship with policies made by the government, regardless of whether the policy is pro-people or just the reverse. Corrupt taxation policies will lead to taxation policies that suppress the rights of taxpayers, while democratic taxation policies will provide welfare for the people through redistribution. The author will review tax policies in Indonesia that seem to be forced and depend on the willingness of legislators, the design of tax policies that are dominated by political power without public participation and very minimal in its distribution to the public. This paper discusses tax administration design and practice and tax law making process that are undemocratic, authoritarian and less useful for taxpayers in Indonesia.

Legal Certainty and Ease of Administration to Increase Tax Compliance: Discourse on Indonesia’s Tax Amnesty Program in Regional Office Area, Directorate General of Taxes East Java 1, Period 2016

KnE Social Sciences, 2018

Research Objective: This study is aimed to evaluate the appropriateness of the tax amnesty program in order to increase tax compliance Background: Based on the research of Enste and Schneider (2002), the percentage of underground economic activity in developing country including Indonesia reaches 35-44% of GDP. This indicates that the taxes arising from such activities are not reported in tax returns. Therefore, the thought of putting on the unpaid tax through the program of tax amnesty came up. The ultimate goal of the program is to increase tax compliance in the future. However, the implementation of the program requires a guarantee of legal certainty for tax payers from being charged with crimes or other demands. Then, the rule of law must be supported with the ease of administration in running the program. Design/Methodology/Approach: This study uses a quantitative approach where ordinary least square (OLS) is applied. Samples taken for this study are the tax payers joining tax amnesty program in Regional Office Area Directorate General of Taxes East Java 1 period 2016. Findings: It is found out that legal certainty and the ease of administration has the influence to increase tax payer's compliance. Tax amnesty is a national reconciliation movement of taxation stipulated in Law number 11, Year 2016, to guarantee legal certainty for taxpayers. Slogan "Claim, Redeem, Relief" is a symbol that is captured by the taxpayers that the tax amnesty will provide ease of administration for taxpayers. The end of result, gives both the willingness to increase tax compliance for the future. Originality/Value: First, this study uses Indonesia as a setting of a developing country where it has underground economic activity in large numbers whilst at the same time tax revenue is still quite vital in generating country revenue. Second, this study provides feedbacks to the authority bodies related to the appropriateness of the tax amnesty program in order to increase Tax Payer Compliance. Finally, this study adds to the current debates related to the pros and cons associated with the existence of a tax amnesty program in developing country.

LEGAL EFFORTS OF TAX MANDATORY OBJECTIVES ON TAX PROVISIONS (Study in the Regional Office of General Directorate of Taxation of South Jakarta I)

Yustisia Jurnal Hukum

The focus of this study is on the resolution of objections raised by Taxpayers in the Regional Office of DGT South Jakarta I. The theory used in this study refers to the opinion of Adam Smith in his book Wealth of Nations which states that a good tax collection must fulfill equity and equality requirements, certainty , convenience of payment, and efficiency. This study uses a naturalistic and interpretive qualitative approach that focuses on the process of resolving taxpayers' objections to a tax assessment as a legal effort. Data collection is done through interviews and direct observation on the object of research. The results of interviews and observations prove that the resolution of the objections to the South Jakarta I DGT Regional Office has been carried out in accordance with the provisions of the applicable tax regulations. This was also reinforced by statements made by Taxpayers who filed objections to the Regional Office of DGT South Jakarta I. The settlement of objec...

Formulation of Tax Law Policy Based on Cooperative Compliance in Preventing Tax Avoidance in Indonesia

Proceedings of the International Conference on Environmental Law and Mining Law, ICTA II-MIL 2023, 21st October 2023, Pangkalpinang, Bangka Belitung, Indonesia, 2023

Tax avoidance is a latent problem in the tax system in Indonesia. The selfassessment system allows taxpayers to avoid tax to minimize the value of wealth transfer to the state. This condition creates potential losses with reduced state revenue from the tax sector. This research uses the juridical-normative method to examine favorable laws and regulations and their comparison with scientific theories and concepts to find the ideal formulation of tax regulation using a corporate compliance approach. Based on the results of the analysis, it is known that cooperative compliance is an approach that is compatible with the needs of optimizing tax compliance in Indonesia. The development of modern legal scholarship has encouraged a paradigm transformation to be more humanist, collaborative, and mutual.

The Impact of the Indonesian Tax Administration Reform on Tax Compliance and Tax Revenue

Jurnal Ekonomi Pembangunan

This study investigated the impact of the Indonesian tax administration reform on tax compliance and tax revenue. I used merged provincial-level data obtained from two main sources: Directorate General of Taxes (DGT) and Indonesia Statistic, and I applied multiple regressions with a fixed-effect model. I find that individual taxpayer compliance was positively affected by the tax administration reform. Tax revenue, however, was negatively affected by the tax administration reform due to DGT’s productivity problem meaning that tax potency variables did not affect tax revenue after the tax administration reform was completed. The findings identify several areas for improvements and suggest several policy implications. First, improving administration in Small Taxpayer Office (STO) especially for individual taxpayers is needed. Second, tax revenue strategy focusing on individual taxpayers is needed to materialize improvement in individual taxpayer compliance into tax revenue. Third, prob...

General Tax Provisions and Procedures Issues on the Omnibus Law in Indonesia

International journal of scientific and research publications, 2021

This study aims to analyze policy issues regarding general provisions and tax procedures based on the tax omnibus law idea. In 2020, Law No. 28 of 2007 concerning General Tax Provisions and Procedures as ceremonial law has undergone substantial and fundamental amendments. The amendments are in Law No. 11 of 2020 concerning Job Creation. This research is a descriptive qualitative study using data techniques such as documentation and literature studies. The study concluded that the omnibus law's purpose was to encourage voluntary taxpayer compliance and increase legal certainty. This omnibus law policy shows the government's desire to provide justice and convenience to taxpayers. The rearrangement of administrative tax sanctions (interest, fines, increases) and interest returns that refer to the reference interest rate and the uplift factor component has met three indicators: time value of money, proportionality principle according to the error rate, and the principle of guilt. Also, regulatory amendments to achieve legal certainty can positively impact more optimal tax revenue in the future, reduce compliance costs, and reduce tax avoidance. However, this regulatory change needs to be in line with clear implementing regulations, not multiple interpretations, and still prioritizing socialization to the public. Index Terms-general tax provisions, omnibus law, tax compliance I. INTRODUCTION ax compliance is a crucial issue in both developed and developing countries. Taxpayers who do not comply will do tax evasion or evasion, causing tax revenue to decrease. Tax compliance also has a close relationship with tax law enforcement. Sanctions are an essential aspect of guaranteeing the state's right to tax revenue and ensuring that taxpayers comply with the law's provisions (Riyanto, 2020). However, Indonesia's formal tax compliance tends to fluctuate and has not been optimal even though it shows that registered taxpayers increase yearly. Some of the factors that cause low compliance are Indonesia's high tax compliance costs, the bureaucracy, and tax officials. Also, tax morale is the key to determining the extent to which taxpayers fulfill their tax obligations voluntarily. In the taxation context, tax morale is an intrinsic motivation to pay taxes. Individuals' willingness or moral obligation to pay taxes or their belief in contributing to society by paying taxes (Torgler, 2005, p. 526). Tax morale will guarantee public contributions through the tax system with or without a coercive approach, sometimes even in the absence of tax laws. Empirically, tax morale has an essential role in increasing voluntary compliance in developed and developing countries (OECD, 2019; Ali, Fjeldstad, & Sjursen, 2014). Various surveys by Afrobarometer, Asiabarometer, and Latinobarometro concluded that several aspects affect the level of tax morale, including satisfaction with public services, trust in government, perceptions of corruption, tax administration, and the imposition of sanctions by tax authorities for taxpayer violations (OECD, 2019). Therefore, in building tax morale, it must be through participatory and transparent tax policy formulation, a tax system that can reduce inequality, and tax imposition that reflects aspects of justice and legal certainty (Darussalam, 2020). The Directorate General of Taxes explained that one of the efforts to optimize tax revenue is applying the omnibus law. Tax optimization is from broadening the tax base and improving policy and administration, especially legal certainty. Minimizing tax uncertainty is the basis for achieving a suitable taxation model for businesses (Owens, 2019). The leading causes of tax uncertainty are tax regulations' complexity, including documentation requirements, inconsistent tax authorities' decisions, and the inability to achieve tax certainty through the roll-out mechanism (OECD, 2017). Based on the 2020 National Legislation Program, the Indonesian government has proposed two Bills that use the omnibus law method, namely the Bill on "Tax Provisions and Facilities for Strengthening the Economy" and the Bill on "Job Creation." In the plenary session, the People's Representative Council of the Republic of Indonesia (DPR RI) has officially ratified the Job Creation Bill (RUU) into Law No. 11 of 2020 on November 2, 2020, in the plenary session. The Job Creation Law implements the idea of the omnibus law as a legal breakthrough that can solve various problems in several overlapping regulations through synchronization into one law comprehensively. Garner in Black's Law Dictionary (2009, p. 186) defines the concept of the omnibus bill as "a single bill containing various distinct T

Factors Influencing Tax Compliance in Indonesia

Riset

This study aims to look at several factors like awareness, knowledge, obstacles, and sanctions, as well as tax regulations impacting taxpayer compliance. There is an assumption that tax compliance in Indonesia is still in the low category, which causes state revenues in the tax sector not to meet expectations. This study uses the literature review method, where the results concluded that awareness, knowledge, obstacles, sanctions, and the existence of tax regulation have an indication or influence to increase tax compliance in Indonesia. The study provides knowledge about the current conditions regarding tax compliance in Indonesia based on existing factors, and new information related to the recent tax regulation in the pandemic 2022.

The Existence of Tax Courts in Indonesia From the Colonial Era, Independence, to Reformation

Asian Journal of Social and Humanities, 2024

tax, tax court, tax dispute The source of the State Budget is Taxes. Tax is a mandatory contribution that is coercive because it is regulated by law. One of the tax collection systems is self-assessment, where taxpayers are given the freedom to pay and report their taxes independently, the fiscal officer supervises and checks the tax returns reported by taxpayers every year. This difference in opinion on the results of the examination between taxpayers and tax officers is what raises the problem of tax disputes. The problem of tax disputes has existed from the Dutch colonial era to the present. The Tax Court is the body that decides tax dispute cases, the name and duties of the tax court have changed from time to time and with the decision number 26/PUU-XXI/2023 concerning the Tax Court. The authority of the tax court changed to the full authority of the Supreme Court. This article concludes that the Tax Court developed over time, and along with tax reform the Tax Court also underwent reform with the transfer of organizational, administrative, and financial coaching authority to the Supreme Court (MA). With this transfer of authority, it is hoped that the Tax Court can decide tax dispute cases fairly and have legal certainty for the parties to the dispute.