JP\/13\/TAX<\/p>\n
Principle of equality a must: IKPI<\/p>\n
Urip Hudiono
\nThe Jakarta Post\/Jakarta<\/p>\n
Proposed amendments to the tax law must underline the principle
\nof equality between taxpayers and tax officials, says a
\nconsultant association, an issue that has been at the center of
\npublic objections to the tax reform bills.<\/p>\n
Implementing such a principle, the Indonesian Tax Consultants
\nAssociation (IKPI) said on Wednesday, could be done through
\nequally strict sanctions against both tax officials and taxpayers
\nviolating any procedures.<\/p>\n
Any disputes arising in assessment should also be resolved
\nthrough a tax court that is separate from the tax office.<\/p>\n
IKPI chairman Tjoetjoe Alihartono said that the new tax laws
\nmust consistently implement the \"self-assessment\" principle
\nIndonesia uses in its taxation system -- in which taxpayers
\ncalculate by themselves the amount of taxes owed to the state --
\nwith tax officials having at first a \"positive disposition\"
\ntowards any submitted tax forms.<\/p>\n
\"Even if a tax official then sets an amount different from a
\ntaxpayer's submitted form, they must provide hard evidence of
\ntheir calculations, and not just base it on mere assumptions and
\nfindings,\" he said in a hearing with the House of
\nRepresentatives' tax laws deliberation team.<\/p>\n
\"Any objection from taxpayers should also be considered by a
\nreview team consisting of the tax official's superiors.\"<\/p>\n
And should the differing opinion between the taxpayer and tax
\nofficials drag on, the matter must then be heard and settled
\nthrough a tax court, with stern sanctions against the guilty
\nparty.<\/p>\n
\"If the court's verdict is in favor to the taxpayers, the tax
\nofficial must then be sanctioned if they have caused losses to
\nthe taxpayer,\" Tjoetjoe said, suggesting an expansion of the
\nstipulation in the current tax laws, which imposes sanctions on
\ntax officials only if they are proven to have caused losses to
\nthe state.<\/p>\n
\"Taxpayers should also be sanctioned if the verdict is against
\nthem, for example, by paying a high fine in addition to their
\nowed taxes, to deter cases of reckless complaints to the tax
\ncourt.\"<\/p>\n
To ensure the court's independence, IKPI suggested that it be
\nestablished outside of the tax office, and for the public's
\nconvenience, be available in every provincial capital, with a
\ncourt of appeals in the capital, and the Supreme Court settling
\nfinal appeals.<\/p>\n
IKIP also suggested the scrapping of the current stipulation
\nof taxpayers having to pay 50 percent of their owed taxes before
\nbeing heard by the tax court, as it does not reflect a sense of
\njustice.<\/p>\n
\"The freezing of taxpayers' bank accounts or assets can only
\nbe done up to the amount of their tax arrears, as more than that
\nis considered unfair to taxpayers and hurts the business
\nclimate,\" the association said.<\/p>\n
Tjoetjoe also highlighted the importance of implementing a new
\ntax amnesty law with the tax law amendments, to give the tax
\nreform effort a better chance of achieving its goal of creating a
\nlarger tax base.<\/p>\n
IKPI is among several parties that the House will hear in
\ntheir deliberation of the amendment bills.<\/p>\n
Others include former finance ministers and tax office chiefs,
\nas well as the Indonesian Chamber of Commerce (Kadin), which has
\nopenly argued that the bills would hurt Indonesia's investment
\nclimate if they still retained their many stipulations considered
\nunfriendly to businesses.<\/p>\n
The deliberation team will hold hearings until the House
\nenters its next recess period on Dec. 9.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13tax-1447899208",
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