Friday 25 September 2015

Indonesia Tax Story (22 September 2013)

Tax in Indonesia is a source of funding which plays an important role in the development of Indonesia’s welfare. In the book of General Tax Provisions and Procedures Law No. 6, 1983 as last amended with No. 28, 2007; it is stated that “Tax is a mandatory contribution to the State owed by the individual or entity that is enforceable under the Act, by not getting reward directly and used for the purpose of State for the greatest prosperity of the people”. However, do the folks feel what we call as prosperity by tax itself? I do not think so.
Instead from what I feel as one of a tax practitioner is the lack of awareness of tax payers to make payments accordingly. It is a cycle; when people do not feel benefits even inclined to the point of loss, they would prefer not to be touched with Tax. As a result, Indonesia government’s efforts to increase the enrollment rate from tax will fall down. Finally, some of experts are speaking out; they release statement with hope of significant changes in Indonesia.
Indonesia today still optimist to achieve high target of tax which stands in the range of IDR. 1.294,25 T. The efforts from our government are keeping rolling and continually; even in 2015 was designated as the year of coaching taxes. The year 2006 is estimated as the year of action whereby it will impose penalty for mischievous tax payers who deliberately forced the government do gijzeling policy.
Why there is too much tax payers in Indonesia that seemed not to support our government programs? One thing that needs to be pursued, the reason why! 2015; by setting high target of revenue from tax, our government has made the tax authorities chased their target even colonize the principle of taxation in Indonesia itself. The principle of self-assessment is seemed to be disappeared. When a policy is no longer upheld, tax payers are only able to be silence. Even some businesses are going bankrupt, the people rights which stated in constitution was just becoming a mere sentences. Or… is there any amendment for our Constitution 1945 Law which no longer cares about the welfare of folks in Indonesia? Social justice and legal assurance can only be a discourse.
Thought that crossed in my mind is How Indonesia will be in Future? Taxation in Indonesia has become a frankly frightening. With this opinion, very ironic that the high target of revenue from Tax sector will be accomplished.
From Experiences, I have learned a lot although I pass the phase through what I call as learning by doing. And I might not expert as people who are well-trained in Tax. Some cases in Indonesia have aroused my opinion that Indonesia Taxation is no longer uphold the rights of tax payers. Criminal effort that was the last regal remedy (Ultimum Remedium) was ruled out. There is no justice anymore on it!
As an example is a company which runs into palm oil industry, Asian Agri. As a pioneer in the development of its farmers’ welfare either socially or economically; it has entangled in Tax crime. It is ironic; a verdict in the legal sphere will be issued without clearly of tax audit. It invites speculation of various parties; academics; analysts and practitioners. Now, Asian Agri has going to be subject of any conferences.
From this case, there is a parable in which taxation in Indonesia are no longer looking for eggs but strangle chickens until it can not be whooped. Tragic indeed! The anti climax has encouraged Asian Agri as a business entity to pay fine; they started to get losses by 2,5T. It’s a great injection for Indonesia’s Tax Authority, but it becomes a powerful jarring for Asian Agri.
2015; Tax payers are seemed to be hunted. With the publication of new regulations and circular letters from Directorate of General Taxation, they as if deliberately finding fault of tax payers. What should be addressed is the method of socialization of tax office so as not to cause different perception of new rules. Tax payers need a good understanding of tax!
No one knows what will happen tomorrow. What we wish to have is clarity and transparency of state. Public needs an evidence of real work and not just a mere waffle. Please restore a positive view of us because people are not always wanted to be fooled!

Note : Indonesia Tax Story is just a general opinion without take side on third party, Thank you. 

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