If previously DGT reached their the tax program goals through series of campaign, public service ads and persuasion letters to widen their scope of potential tax targets, now DGT uses more aggressive approach by reaching their prospective taxpayers in their place, literarily, through National Tax Census (SPN).
The National Tax Census (hereinafter referred to as “Tax Census”) has been started since the end of last September 2011 under the Finance Minister Regulation No. 149/PMK.03/2011 dated 12 September 2011 (hereinafter referred to as “PMK 149”).
As accorded with PMK 149, with the Tax Census, DGT gathers a series of tax data to extend tax basis, to achieve tax revenue target, and to secure State Revenue.
Fuad Rahmany, the Director General of Taxes, explained that the Tax Census does not only consist of data collection activities, but it also involves public socialization and tax education.
For instance, the tax officers will also give tutorials for tax return filling, tax payment procedures, etc. The substantial numbers of individual and corporate Taxpayers which are not complying with their tax liabilities is presumed to be the main reason behind the Tax Census. The data from Statistics Indonesia (BPS) and DGT shows that there are 22,3 million companies in Indonesia, where the 12,9 million of which are potential for the State’s Tax Revenue.
Unfortunately, only 466 thousand companies submitted Corporate Tax Returns in last April 2011, or only 3.61% who paid their taxes under the ratio of their Tax Returns and the potential corporate taxpayers. In addition, from the total of 238 million Indonesian residents, there are 110 million workers, where the 50 million of which are having income above the non taxable income. Ironically, only 8,5 million of which pay the tax, or only 7.73% who pay the tax under the ratio of their Tax Returns in the active worker group is only 7.73%.
Responding to the fact that the State Revenue from taxes is only contributed by few outnumbering the massive population as recorded by BPS, DGT aims to reach higher tax revenue from such potential Taxpayers for year to year. This year, the tax revenue target is IDR 878 trillion whereas the revenue received as per 5 August 2011 is IDR 466 trillion. Thus, it is understandable that the Tax Census is highly expected to boost this year’s tax revenue. Through the Tax Census, the existing taxpayers are prompted to settle their taxes. Speaking of tax settlement, it is off course indicated by the existence of a tax return, not a Tax ID Number (NPWP).
According to DGT data, more than 15 million individual Taxpayers have Tax Identity Numbers (NPWP). Thus, it is not surprising that the tax revenue target was constructed in a huge amount but the realization of tax revenue is still way far from the target even after the first semester of year 2011 ended. In addition, the Tax Census is an effective tool for DGT to update and complete the current database, for analyzing the tax potential and making decision related to the appropriate enforcement. The enforcement on the tax payment and reporting can be carried out, from persuasive approaches to coercive approaches (inquiry letter issuance to audit and confiscation). From the equality point of view, the Tax Census is gateway to ensure that all taxpayers with the same burden are to pay the same taxes. It is a very unfair fact that there is a huge number of big taxpayers have not paid the taxes,
where as small taxpayers have their income withheld by their employers and paid the prices of goods and service with value added tax included. As targeted by DGT, there will be 6 million new taxpayers to be reached by year2012, using the force of 3000 tax officers spreading to the regional areas under all the respective Tax Offices throughout Indonesia. In fact, to achieve the higher tax revenue target as stated previously, the targeted number of new Taxpayers is doubled to 12 million, which requires the force in a doubled number as well, or equals to 6000 tax officers.
This could be the most ambitious program that DGT has made. Hence, it would only be succeeded under an effective conduct by DGT, public’s good attention and mass media support. At the Tax Census launching phase, DGT has made a a also gives an early warning to the Taxpayers by precisely informing that besides wearing uniform, the tax census officers are provided with the assignment letter and identity card. The Taxpayers are also warned not to make any tax payment to the census officers, and the tax payment may only be conducted via bank transfer. And, for the Tax Census purpose, the Taxpayers are only required to prepare the tax returns and to provide answers and explanations if needed to every question that will be offered by the census officers.
