BPK: Authority Fails to Optimize Collection of IDR 5.37 Trillion in Tax Receivables

JAKARTA. The Audit Board of the Republic of Indonesia Agency (BPK) considers that the Directorate General of Taxes (DGT) is not optimal in collecting tax receivables worth IDR 5.37 trillion that have not expired.

The tax receivables consist of tax receivables that have not been actively collected amounting to IDR 4.67 trillion. Then those from tax receivables that have been actively collected are worth IDR 701.9 billion. Furthermore, those originating from receivables have not been collected optimally until the expiration of IDR 461.78 billion. 

This was revealed in the Audit Report (LHP) on the internal control system and compliance with the provisions of the Central Government's 2023 laws and regulations.

Quoting Kontan.co.id, the BPK said the conclusion was issued after the BPK conducted tests on the DGT's tax receivable collection actions. "Based on the test results on tax receivable collection actions, it is known that the DGT has not taken optimal action to collect bad debts," the BPK wrote in its report.

According to the BPK, this is not in accordance with applicable tax provisions, namely Regulation of the Minister of Finance (PMK) Number 61 of 2023 concerning Procedures for Implementing Tax Collection of Accrued Tax Amounts.

The regulation stipulates that tax collection actions can be carried out by issuing warning letters, instant and simultaneous collection orders, issuing and notifying forced letters, carrying out confiscation, selling confiscated goods, proposing prevention, and/or implementing hostage-taking.

BPK stated that the DGT's suboptimal collection was due to several reasons. First, the Head of the DGT Regional Office and the Head of the relevant DGT Tax Office did not optimally supervise and control the collection activities of 10,097 tax assessments.

Second, the Head of the Audit, Assessment, and Collection Section was not careful in conducting an inventory of bad debts that have not expired collection of IDR 5.37 trillion and taking active collection actions following the provisions.

Furthermore, BPK advised the government to instruct the Director General of Taxes to supervise and control the collection activities of 10,097 tax assessments. In addition, for tax receivables that have not expired amounting to IDR 5.37 trillion, BPK asked the Head of the Audit, Assessment, and Collection Section to collect according to the provisions. (ASP/KEN)