Thu, 01 Jul 2010

TEMPO Interactive, Jakarta:Tax restitutions or the refund of overpayment of taxes is one of the tax services susceptible to manipulation. According to chief of Inspection Strategy at the Tax Directorate General, Tunjung Nugroho, the commonly-used modus is submitting a fake proof of overpaid tax.

Although the system is weak, it is still being implemented because it is set by the Tax Law. “The system is regulated by the law, so what can we do?” asked Tunjung during a tax training course at the Tax Directorate General Office, yesterday.

Tunjung added that tax refunds can be eliminated if advanced tax reductions are eliminated. “Tax payments should depend on reports from tax payers,” he said.

However, he said the system can only be implemented under two conditions. First, tax payers should report their actual obligations. Secondly, the Tax Directorate General has an overall supervisory system on tax payers. “It is still difficult to rely on tax payers’ obedience. The only way is for the Tax Directorate General to audit transactions made by tax payers,” he concluded.