The Corruption Eradication Commission (KPK) has recommended that the tax office strengthen tiered supervision, eliminate face-to-face contact between tax officials and taxpayers, and to improve the tax objection system.
By
NIKOLAUS HARBOWO
·4 minutes read
KOMPAS/BAHANA PATRIA GUPTA
Taxpayers outside the city of Surabaya report their personal annual tax return at the East I Regional Tax Office, Surabaya, Friday (29/3/2019). Personal Annual SPT reporting will end on March 31.
JAKARTA, KOMPAS - In addition to the prosecution being carried out by the Corruption Eradication Commission (KPK), the disclosure of bribery cases implicating tax officials can also be used as an opportunity to strengthen prevention measures. The KPK has recommended that the tax office strengthen tiered supervision, eliminate face-to-face contact between tax officials and taxpayers, and to improve the tax objection system.
"So, the supervision must be strengthened so that it does not go wild. The cowboys are usually on the field. It (can) occur at the service office level or at the objection level. They are the most vulnerable places. If there is supervision, whoever is cheating can be caught, ” the KPK’s Deputy for Prevention Pahala Nainggolan said in Jakarta, Thursday (4/3/2021).
They are the most vulnerable places. If there is supervision, whoever is cheating can be caught.
Pahala asked the Finance Minister to strengthen tiered supervision so that if there was an improper examination from a lower level, the supervisor at the higher level could immediately find out and issue reprimands.
He also said that such a measure should also be followed with the elimination of face-to-face contact between tax officials and taxpayers, as well as improving the objection system. According to him, the Finance Ministry must have the courage to penalize tax officials whose findings are lost in the tax court. If their findings lose in the tax court, it must affect their performance appraisal, he added.
Deputy for Prevention of the Corruption Eradication Commission Pahala Nainggolan in a press statement at the KPK Building, Jakarta, Friday (8/1/2021).
As reported, the KPK is investigating the bribery cases worth tens of billions of rupiah implicating tax officials. The alleged bribery was uncovered thanks to cooperation between the KPK and the Finance Ministry’s internal auditors.
Finance Minister Sri Mulyani Indrawati earlier said tax officials who were being investigated by the KPK had been suspended and that the legal process would not affect the activities of the Taxation Directorate General.
On Thursday, the KPK’s acting spokesperson Ali Fikri said that the KPK had sent a letter to the Immigration Directorate General to ban the people allegedly involved in the bribery case from traveling abroad. "The travel ban is needed to ensure the investigation runs smoothly. If they are needed during the investigation, they will be available in the country," said Ali.
The head of public relations and general affairs of the Immigration Directorate General Arya Pradhana Anggakara, said in a written statement that his office had officially issued a ban on the Taxation Directorate General’s two employees, identified as APA and DR, from traveling abroad. APA is a director at the tax office.
The Immigration Directorate General also banned four other people from traveling abroad, namely RAR, AIM, VL, and AS. Arya explained that the travel ban was imposed on the six people at the request of the KPK. The travel ban take effect from 8 Feb. 2021 to 5 Aug.2021.
Pahala said tax payment was vulnerable to bribery practices as both taxpayers and tax officials would benefit from the manipulation of the tax value.
Kompas
Based on Immigration Prevention and Determination System, it is noted that one of the ASNs in the Directorate General of Taxes being prevented from going abroad is the Director of Extensification and Assessment of the Directorate General of Tax, Angin Prayitno Aji.
He said there are loopholes that could cause bribery to occur. First, according to him, tax officials try to find fault with taxpayers and if there is “finding”, they will try to settle it with the taxpayers and receive money as the compensation.
Second, tax officials may mark up the tax value so that taxpayers feel pressured and finally submit an objection to the tax office.
Based on the KPK\'s study on the tax objection and appeal mechanism in 2018, almost 90 percent of taxpayer objections were rejected. As a result, they filed an objection with the tax court. In fact, nearly 60 percent of the objections filed in the court were accepted.
Third, bribery in tax payment also involves tax consultants.
The manager of the Research Department of Transparency International Indonesia, Wawan Suyatmiko, said the KPK must tighten its supervision over the Finance Ministry so that similar cases did not occur again. The ministry’s internal auditors should also improve the tiered supervision system.
This article was translated by Hendarsyah Tarmizi.
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