Govt continues modernizing tax system<\/p>\n
Tony Hotland, The Jakarta Post\/Jakarta<\/p>\n
The government is now moving fast to implement its new tax
\nadministration system in tax offices across the country, and
\nexpecting an annual increase of Rp 30 trillion (about US$3.21
\nbillion) in tax revenue.<\/p>\n
Speaking during a ceremony to kick off the implementation of
\nwhat is promised to be a modern, transparent electronic system
\nfor six big money -- mostly for foreigners -- tax offices on
\nMonday, Minister of Finance Boediono said that the system would
\neventually lead to better compliance from taxpayers.<\/p>\n
\"Taxpayers say they sometimes falsify their taxes because they
\ndon't trust us. This modern system makes everything more
\ntransparent. If they trust us, hopefully they will comply with
\ntheir obligation, so that more taxes will be collected to support
\nthe state budget,\" said Boediono.<\/p>\n
The six offices here comprise two that are specifically for
\nforeign companies and expatriates, two for foreign investors, one
\nfor state-owned enterprises and one for domestic middle income
\ntaxpayers.<\/p>\n
\"We hope that foreign investors will not be reluctant to
\ninvest here now, because this system offers them accountability
\nand legal certainty,\" Boediono asserted.<\/p>\n
The system works on a sophisticated, completely electronic-
\nbased system (such as e-registration, e-filing, e-payment and e-
\ncounseling).<\/p>\n
The offices will be manned by well-trained tax officials, each
\nof whom will focus on certain taxpayers, and each of the
\ntaxpayers will have their documents taken care of by tax
\nofficials assigned to them. Each of the offices will also have a
\ncomplaint center.<\/p>\n
With the application of the system, the government said that
\ntaxpayers were guaranteed to get better and faster service as
\nwell as quicker solutions to disputes to assure legal certainty.<\/p>\n
The system was initially applied in the Large Taxpayers Office
\n(LTO), which was set up in mid 2002 after a recommendation by the
\nInternational Monetary Fund and is tasked with collecting taxes
\nfrom the country's largest income earners.<\/p>\n
The establishment of the LTO and the plan to apply the system
\nin all tax offices here are part of the government's efforts to
\nreform the country's tax collection system and boost tax revenue.<\/p>\n
The application of the system in these six offices and also in
\nthe LTO means that 55 percent of the country's total tax revenue
\nwould now be administered by a modern system.<\/p>\n
The government expects that all tax offices on Java, which
\naccounts for about 80 percent of the country's total tax revenue,
\nwould eventually be able to apply similar systems by 2007.<\/p>\n
Director General of Taxation Hadi Purnomo said that the
\nbiggest constraint in launching the system in all tax offices was
\nthe availability necessary infrastructure.<\/p>\n
Also as a part of the tax reform, the tax office established
\nin June a special task force that is assigned to deal with
\nserious cases and problems that involve foreign companies and
\nexpatriates. There are several cases that have been processed,
\ninvolving companies from the Netherlands and Korea.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-continues-modernizing-tax-system-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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