A New Chapter in Fiscal Compliance for the Industrial Sector
Industrial growth is essentially measured by more than just increased production capacity, rising investment, or expanding markets. Behind every economic activity, a close relationship exists between the business world, the state, and society. Companies require legal certainty, infrastructure, and stability to grow. Conversely, the state requires contributions from the business sector to fund development and provide public services.
Within this relationship, fiscal compliance should be viewed not merely as an administrative obligation, but as an integral part of economic governance. Companies that grow within a nation ultimately hold responsibilities not only to their shareholders but also an obligation to contribute proportionally through state revenue.
Therefore, when taxation issues arise within an industrial sector, attention should not focus solely on the magnitude of potential revenue to be recovered. There is a more fundamental issue: how to ensure fairness for compliant businesses, how to maintain the investment climate, and how to encourage economic activities to continue growing within legal corridors.
One such example is the news regarding enforcement actions against 38 out of 40 steel companies indicated to have failed to meet their tax obligations. The Directorate General of Taxes (DJP) stated that the handling process is ongoing and may proceed to the investigation stage if the evidence obtained meets the necessary legal requirements. However, at the same time, the DJP also emphasised the ‘ultimum remedium’ approach, placing the recovery of tax obligations as a vital priority before criminal proceedings are pursued as a last resort.
This approach signifies a new chapter in enforcing tax compliance within the industrial world. ‘Ultimum remedium’ does not mean the state is being lenient towards violations. Rather, it demonstrates that law enforcement can be designed to achieve more substantive goals: restoring the state’s rights, returning taxpayers to compliance, and ensuring that productive economic activities do not abruptly cease. In the context of taxation, the law is not only about punishment; the law also serves a restorative function.