NEXT Indonesia suggests real verification mechanism for asset repatriation

Jakarta (ANTARA) - Head of Research at NEXT Indonesia Center, Ade Holis, suggests that the government implement a real verification mechanism for taxpayers’ assets to avoid tax avoidance practices during asset repatriation. In a written statement in Jakarta on Wednesday, Ade explained that the tax reporting system has so far been conducted voluntarily by taxpayers. If the Directorate General of Taxes (DJP) of the Ministry of Finance only relies on reporting documents from taxpayers, he fears there will be efforts to avoid taxes through data manipulation. “Therefore, the government cannot just rely on voluntary disclosures but also needs to ensure there is real verification of the assets owned by taxpayers,” Ade said. Asset repatriation is the process of returning or transferring assets, wealth, or funds belonging to citizens or companies from abroad back to their home country. After that period ends, the government plans to conduct a comprehensive examination of foreign funds that have not been reported in accordance with tax provisions. For taxpayers who do not comply with those provisions, especially business actors, one of the sanctions prepared is a ban on conducting business in the country. According to Ade, the voluntary tax reporting scheme provides loopholes for document manipulation or reporting asset values that do not match the actual conditions.