Tax Audit Trend for Year 2012

 

  Tax Audit Trend for Year 2012 

 Director General of Taxes NumberSE - 07/PJ/2012

 

As one of the law enforcement mechanism on the self assessment system, DGT is mandated to manage the source of fund from tax sector. For year 2012, the national tax revenue is targeted to reach up to IDR 13,300,000,000,000 (thirteen trillion and three hundred billion rupiah), compared to the target in previous year which is only up to IDR 9 trillion. To achieve the target, DGT is supported by a comprehensive series of tax plan and strategy, including tax audits.

As  one of the functions of law enforcement upon the self assessment system, tax audits activities shall be well-planned, professional, complying with the prevailing regulations, based on certain focus and strategy, and creating a deterrent effect.According to Circular of Director General of Taxes No. SE - 07/PJ/2012, the tax audit for year 2012 are divided into two groups, namely tax audits for evaluating the tax compliance, and tax audit for other purposes related to the implementation of the tax regulations.

Tax Audit for Tax Compliance Evaluation 

It deals with tax returns of taxpayers who meet the criteria of routine and special tax audits. The completion of the tax audit process will be indicated with the issuance of a tax assessment notice or SKP (Tax Underpayment Assessment Notice/SKPKB, Additional Tax Underpayment Assessment Notice /SKPKBT, Nil Tax Assessment Notice/SKPN, Tax Overpayment Assessment Notice/SKPLB) and Tax Collection Letter /STP). This type of tax audit has been considered as the backbone of the State tax revenue for year to year. 

Target of Tax Audit

Speaking of tax audit completion, the DGT has set out the priority scale on hundreds of tax audit cases which is structured below:

1. Regular Audit on Refund of Overpayment Tax Return and its expansion having a compensation effect

2. Regular Audit on Compensation of Overpayment Tax Return whose assessment notice issuance period is going to elapse

3. Special Audit having potential significant revenue

4. Regular Audit related to Individual Taxpayers leaving Indonesia for good

5. Regular Audit related to Corporate Taxpayers conducting merger, business coalition, business expansion, business spin off, and liquidation/business dissolution; and

6. Regular Audit upon Annual Income Tax Returns stating loss with no overpayment having potential significant revenue, with the following conditions:

 a. Having significant transactions with affiliated parties; 

 b. Having a compensation effect in the following tax years; or

 c. Having loss for 3 (three) respective years or more.

For corporate taxpayers, these are sectors as the main target of the 2012 tax audit: