Kamis, 29 Desember 2016

GOVT COLLECTS RP105 TRILLION TAX REVENUE WITH TAX AMNESTY PROGRAM

By Andi Abdussalam
          Jakarta, Dec 29 (Antara) - The government, through its nine-month tax amnesty program ending on March 31, 2017, has as of December 2016 collected Rp105 trillion in tax revenue, or 63.6 percent of its Rp165 trillion target.
         In July 2016, the government launched the tax amnesty program to encourage taxpayers to repatriate all assets they had stashed abroad, estimated to amount to Rp4 quadrillion.
         The government divided the program into three phases, with the first running from July 18 to September 30, followed by the second from October 1 to December 31, 2016, and the last from January 1 to March 31, 2017.  
    Under the program, Rp1 quadrillion is expected to flow into the country as repatriated funds, of which the g

overnment hopes to mop up Rp165 trillion in taxes from tax redemption and asset declaration.
         During the first phase, the government successfully collected Rp97.2 trillion in tax amnesty revenue, or 58.9 percent of the target, arousing optimism over meeting the target by the end of the program.
         However, data from the Directorate General of Taxation showed that during the second phase (as of December 28), the government only collected Rp7.8 trillion in additional tax revenue, or some 4.7 percent of the target. This amount is significantly lower than that earned in the first phase.

        Thus, the government has to work hard to encourage more taxpayers to join the program so that it can collect the remaining 36.4 percent, or Rp60 trillion, of the target in the third phase.
        The Directorate General of Taxation's website reported on Wednesday (Dec 28) that the Rp105 trillion tax revenue figure was based on receipts listed in the taxpayer's Tax Payment Letter (SSP).
        It consists of Rp101 trillion in tax amnesty penalties, Rp3.06 trillion in due tax payments, and Rp679 billion as payment for preliminary evidence acquired in the tax investigation.
         The total declared assets based on the taxpayers' asset declaration letters (SPHs) reached Rp4,155 trillion (exceeding the target of Rp4 quadrillion), which included Rp3,012 trillion worth of assets in the country, Rp1,002 trillion held overseas, and Rp141 trillion in repatriated funds.
        In total, the number of SPHs submitted by taxpayers reached 571,546, with 606,180 receiving SSPs and with redemption money based on the SPH valued at Rp99.3 trillion.
        The number of taxpayers who have joined the tax amnesty program was recorded at 456,211.
        Most of the redemption money was contributed by non small and medium enterprise (SME) individuals, who paid Rp83.3 trillion, followed by non SME corporate bodies, who paid Rp11.3 trillion; SME individuals, Rp4.47 trillion; and SME corporate bodies, Rp302 billion.
        In connection with state revenue collection at the end of the 2016 fiscal year and the deadline for tax amnesty penalty payments, designated banks and post offices were asked to extend their service hours on December 30 to at least 9 p.m. local time and on December 31 to at least until 3 p.m. local time.
        Taxpayers who want to pay redemption fees are expected to first confirm that the bank or post office is providing the service.
        The Directorate General of Taxation reminded taxpayers to fill in all sections of their SPH documents to expedite the process.
        The documents required include receipts for tax amnesty penalty payments, receipts for due tax payments where relevant, a list of debts with supportive documents, receipts for tax payments, copies of the annual income tax declaration document, and a statement of power of attorney if the SPH is submitted by a third party.
        Meanwhile, Executive Director of the Center for Indonesian Taxation Analysis Yustinus Prastowo noted that the tax amnesty program should not be used merely as a short-term measure to strengthen the state's finances, but more importantly, it should serve as an initial step toward tax reform for fiscal strengthening.
         The participation of taxpayers in the program and amount of repatriated funds are still far below expectations. The government, therefore, needs to prepare a more comprehensive road map for tax reform.
         "It is important to develop trust between taxpayers and the government. Taxes should serve as an instrument for democratization," he remarked.
         Chief researcher of the Danny Darussalam Tax Center B Bawono Kristiaji suggested the government should make use of the momentum of the program to improve taxpayers' commitment to fulfilling the obligation and to expand the tax base.
          The expansion of the tax base should be supported with integrated data management that can be optimized to prepare a map for defining potential, verification, data matching, and so on. The data could then be used by the government for further intensification of the tax program.
         In addition, the government must send a strong signal with strict law enforcement after the March 2017 deadline of the tax amnesty program, according to Bawono Kristiaji.
(A014/INE  )EDITED BY INE (T.A014/A/BESSR/F. Assegaf) 29-12-2016 15:00:

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