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Recently, the Directorate General of Tax issued Circular number SE-20/PJ/2017 on the Post Tax Amnesty Supervision of Taxpayers (Circular). The Circular regulates the supervision of both taxpayers who participated in the tax amnesty program (Participants) and taxpayers that did not participate (Non-participants). In this column we discuss the types of supervision by the tax authority which are set out in the Circular. The Circular has been in force since August 24, 2017.
Supervision of the Taxpayer
Under the Circular supervision by the tax authority is divided into:
- Tax compliance and data inconsistencies in the tax declaration letters:
- for Participants, focusing on the taxable year
- for Non-participants, focusing on any external and internal data or any other data; and
- General supervision,
- for Participants, focusing on any other tax compliance issues focusing on the taxable year;
- for Non-participants, focusing on tax compliance for all types of tax.
Tax Supervision for Participants
Participants of the tax amnesty program will be supervised by the tax authority through examination the data of the following documents on tax compliance and data inconsistencies:
- Data in declaration letters;
- Taxpayer-asset data in gateway reports;
- Taxpayer-asset data in taxpayer reports;
- Data relating to assets, income, costs and compensation, as reported by taxpayers in both Annual income-tax returns (SPT PPh) and SPT Masa; and/or
- Taxpayer-asset data and income.
Tax Supervision for Non-participants
Supervision of Non-participants will be done by checking and comparing the following data:
- Annual income-tax returns (SPT PPh); and
- Internal data, external data and/or information which has been validated and provided through the tax system.
Consequences of Non-Compliance or Data Inconsistencies
In case of inconsistencies or non-compliance, depending on the type of inconsistency or non-compliance the tax office will then either send a warning letter or a Taxpayer Supervision Report, which may lead to a further investigation by the tax authority.
This column is provided by PNB Law Firm Jakarta