Govt introduces amnesty in revised draft tax laws<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
To encourage tax evaders to start paying their taxes -- in return
\nfor immunity from penalty and prosecution -- the government has
\nprovided a tax amnesty in its recently completed draft revisions
\nof the tax laws.<\/p>\n
In the draft revision for law on general taxation arrangements
\nand procedures, the government will allow taxpayers to revise
\ntheir tax statements and report their real earnings starting from
\nthe 2001 fiscal year until 2005.<\/p>\n
If taxpayers accept the offer, the government will reduce or
\neliminate entirely all administrative penalties, as well as
\ndropping any criminal charges.<\/p>\n
\"We are providing a kind of an initial tax amnesty facility
\nfor recalcitrant taxpayers in order to the expand taxpayer base
\nas well as reap more tax revenue,\" Robert Pakpahan, a member of
\nthe tax laws revision team at the Ministry of Finance's
\nDirectorate General of Taxation, told The Jakarta Post on
\nTuesday.<\/p>\n
He said, however, that the amnesty would be valid only during
\nthe first year of the implementation of the new tax law, which is
\nscheduled to take effect next year.<\/p>\n
\"It is better for the government to try to collect the unpaid
\ntaxes by reducing or abolishing penalties against taxpayers
\nrather than getting nothing from them,\" said Robert, adding that
\nthe offer would cover unpaid income taxes, value added taxes,
\nluxury taxes and land and building taxes.<\/p>\n
The deal is also good for individual as well as corporate and
\ninstitutional taxpayers.<\/p>\n
Details of the tax amnesty scheme will be outlined in a
\nministerial regulation.<\/p>\n
Indonesia has a self-assessment tax system in which taxpayers
\nare given the authority to state their own tax filings, with the
\ntax office later cross-checking the filings.<\/p>\n
The tax amnesty is meant to encourage people and enterprises
\nto register as taxpayers without fear of prosecution for past tax
\ndebts.<\/p>\n
As reported earlier, the Directorate General of Taxation
\nrecently completed the revision of Law No. 16\/2000 on general
\ntaxation arrangements and procedures, Law No. 17\/2000 on income
\ntax and Law No. 18\/2000 on VAT and luxury tax.<\/p>\n
The revisions, the third major tax reform since 1983, will be
\nsubmitted to the House of Representatives next month for
\ndeliberation.<\/p>\n
The head of the tax law revision team, I Made Gde Erata, told
\nthe Post the government was still completing the draft of a
\nspecial, separate law on tax amnesty.<\/p>\n
That law would contain a wider tax amnesty mechanism that
\nwould cover all the way back to the 1980s.<\/p>\n
\"The facility in the upcoming laws is just an introduction for
\na wider and more comprehensive tax amnesty law that we are still
\npreparing,\" said Erata.<\/p>\n
He acknowledged that during the first year of the offer, there
\ncould be a potential loss of tax revenue. However, this loss
\nwould be made up for in the long run with a wider taxpayer base.<\/p>\n
Many believe the amnesty is primarily aimed at luring back
\nbillions of dollars parked overseas by Indonesian conglomerates
\nin the aftermath of the economic crisis to avoid paying taxes.<\/p>\n
It is hopes these funds will revive the real sector and
\neventually absorb some of the unemployed. In addition, they would
\nhelp the government reap more tax revenue from a vibrant
\ncorporate sector.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-introduces-amnesty-in-revised-draft-tax-laws-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}