Nusakambangan prison for tax delinquents

JAKARTA. Directorate General of Taxation is struggling to meet the target of tax revenues at the end of the year. Let alone, the second phase of tax amnesty lacks participants.

The tax authority has launched some strategies to meet the target, including by sending email to 204,125 taxpayers. The taxpayers are invited to join tax amnesty, as they have not reported their assets on 2015 Annual Tax Notification (SPT).

Another strategy is opening the 24 hours tax amnesty service at the end of the year. “It is up to the taxpayers, whether to join tax amnesty or not. But we have valid data,” said Director General of Taxation Ken Dwijugiasetiadi, Wednesday (21/12).

Directorate General Taxation gas promised to be more firm in reinforcing tax regulations. The tax authority will also impose harsh sanctions on taxpayers, who failed to comply with tax obligation.

For an example, Director of Services, Counseling, and Public Relations at Directorate General of Taxation Hestu Yoga Saksama said that the tax authority has seized property boss with the initials of BH, a resident of Cilacap, Central Java. BH is now being jailed in Nusa Kambangan prison.

BH is found to have tax arrears of Rp 839 million. Hestu claimed that there are five cells in Nusa Kambangan prison for the tax delinquents.

Director of Inspection and Billing at Director General of Taxation Angi Prayitno Aji stated that the number of tax delinquents tend to increase. As of 19 December 2016, the payment of arrears reached Rp 36.9 trillion, up by 29.9% compared to last year. The amount of billings also rose by 10.76% to Rp 17.3 trillion.

This year, the Directorate General of Taxation issued 346,000 forced letters, up by 91.96% from 2015. During this period, tax authority has also released 17,659 foreclosure warrants, up from 9,000 foreclosure warrants in 2015. "Last year, we seized 38 people. This year we have seized 74 people," he said.

Therefore, Directorate General of Taxation has to run tax reform in a serious manner, mainly after tax amnesty. So far, the government has established Tax Reform Team. “The team was established to launch comprehensive reform, starting from the human resources, regulations, system, and organization aspects,” said the Head of Tax Reform Team.

Executive Director of Center for Indonesia Taxation and Analysis Yustinus Prastowo said that the tax reform requires simultaneous efforts in a short and long time periods, as well as serious supports from all parties. "Change can happen only if the tax authority opens up," he said. (Muhammad Farid/Translator)