Tax authority will hunt you, again

JAKARTA. After tax amnesty program expires on 31 March 2017, Directorate General of Taxation will conduct investigation over 400,000 taxpayers, as well as the tax amnesty participants, who allegedly did not report all of their treasures in the assets declaration letter.

Director of Counseling, Services, and Public Relations of Directorate General of Taxation Hestu Yoga Saksama said, the tax authority will deploy 5,000 personnel to conduct the investigation. “This year, we will be focusing on the taxpayers, who did not participate in tax amnesty, as well as on the valid data (on unreported assets),” he said.

Hestu said, the data of targeted 400,000 taxpayers would be submitted to the regional tax offices and Tax Offices (KKP) in August 2017. Subsequently, tax offices in the regions will monitor and investigate the taxpayers.

Previously, Directorate General of Taxation had delivered reminder emails to 204,125 taxpayers to join tax amnesty. Hestu said, tax officers will prioritize on the investigations on the taxpayers, who have received the e-mails, but would have not clarified the data until the end of tax amnesty program.

The Directorate General of Taxation will no more send the reminder e-mails or notifications to the targeted taxpayers. “We have started matching the data,” Hestu said.
Can lead to misperception

Aside of those who have not participated in tax amnesty, the tax authority will investigate tax amnesty participants, who have not report all of their assets. If a taxpayer is found to have not reported an amount of assets, the taxpayer will be subject to pay income tax on the additional assets, plus a fine of 200% of unpaid income tax.

Executive Director of Center for Indonesia Taxation Analysis (CITA) Yustinus Prastowo said, the Directorate General of Taxation has authority to conduct the investigations.

The investigations are also mandated under the Law on Tax Amnesty. However, there should be socialization (of the investigation) to those who have not participated in tax amnesty. “One month remains for them to participate in tax amnesty,” he said.

Yustinus reminds, the investigation may lead to misperception among the people, if too exposed. “It might lead to a misperception that (the tax amnesty) has been misdirected to those who live in the country and to lower-middle class,” he said. (Muhammad Farid/Translator)