What is Tax Amnesty? Will There Be a Third Version in the Purbaya Era?

Bittime - Taxes are a major source of state revenue. However, not all taxpayers report and pay their taxes correctly. To address this, the Indonesian government implemented a program.Tax Amnesty or Tax Amnesty.

This program provides an opportunity for taxpayers to disclose unreported assets in exchange for the elimination of administrative and criminal tax sanctions.

This article will discuss in full aboutWhat is Tax Amnesty, the purpose of drafting the Tax Amnesty Law, the principles underlying it, and its impact on the national economy.

What is Tax Amnesty?

Tax Amnesty isa policy of eliminating taxes that should be owed, without being subject to administrative or criminal sanctions, on the condition that the taxpayer disclosesall his assets and pay a certain amountransom in accordance with the provisions of the law.

This program is usually run by the government to encourage taxpayer transparency, improve the tax database, and increase state revenue.

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The Purpose of Tax Amnesty in Indonesia

Refers to Tax Amnesty Law, there are three main objectives in compiling this program, namely:

1. Promoting economic growth and restructuring
   By transferring assets into the country, the Tax Amnesty is expected to increase domestic liquidity, strengthen the Rupiah exchange rate, lower interest rates, and increase investment.
   
    
2. Tax system reform
   The Tax Amnesty provides momentum for building a fairer and more comprehensive tax system. Disclosed taxpayer asset data helps the government expand a valid and integrated tax database.
   
    
3. Increasing state revenue
   The ransom money from Tax Amnesty participants becomes additional state revenue that can be used to finance national development.

Basics of Tax Amnesty Implementation

The Tax Amnesty Law also stipulates severalbasicor the basic thinking that forms the basis for implementing this program, namely:

• Legal certainty– ensure the program runs smoothly with guaranteed legal certainty.
  
   
• Justice– respect the balance of rights and obligations of taxpayers and the state.
  
   
• Benefits– ensuring policies provide real benefits to society, the state and development.
  
   
• National interests– put national interests above personal or group interests.

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Ransom Money in Tax Amnesty

In practice, taxpayers who participate in the Tax Amnesty are required to payransom, which is a sum of money paid into the state treasury. The amount of the ransom is determined based on the value of the assets disclosed.

This mechanism replaces the tax obligations and sanctions that would otherwise be imposed, thus providing a middle ground between taxpayers and the government.

The Impact of Tax Amnesty on Indonesia

The Tax Amnesty program that was implemented in Indonesia had a number of positive impacts:

• Increasing state revenue through ransom money that goes into the state treasury.
  
   
• Improving tax compliance by expanding the taxpayer database.
  
   
• Encourage asset repatriation from abroad thereby increasing domestic investment.

However, this program has also drawn criticism, because it is considered to provide "forgiveness" for non-compliant taxpayers, thus raising questions about fairness.

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Tax Amnesty According to Finance Minister Purbaya

Finance Minister Purbaya emphasized that the government has no plans to hold a third or subsequent Tax Amnesty program. He argued that the previous Tax Amnesty program was considered sufficient to provide taxpayers with an opportunity to improve their compliance.

According to the Ministry of Finance, the government's current focus is strengthening a fair tax system and ensuring that taxpayers consistently fulfill their obligations without having to wait for a new tax amnesty program.

This is in line with the initial objective of the Tax Amnesty Law, namely to broaden the tax base and encourage transparency of taxpayer assets.

This statement demonstrates that the Tax Amnesty is indeed an extraordinary policy, not a routine one to be repeated over and over again. The government hopes that the public will become increasingly aware that tax compliance is a fundamental foundation for national development.

Conclusion

Tax Amnesty isA fiscal policy instrument aimed at strengthening the economy, expanding the tax base, and increasing state revenue. Based on the principles of legal certainty, justice, benefit, and national interest, this program is part of tax reform in Indonesia.

While there are always pros and cons, the experience of the Tax Amnesty demonstrates the importance of tax transparency and the active role of taxpayers in supporting development.

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FAQ

What is Tax Amnesty?

Tax Amnesty is a tax amnesty program where taxpayers can disclose unreported assets and pay a ransom, without being subject to penalties.

What is the purpose of drafting the Tax Amnesty Law?

The goal is to accelerate economic growth, improve the tax system, and increase state revenue.

What are the principles of implementing Tax Amnesty?

The basis includes legal certainty, justice, expediency, and national interest.

What is meant by ransom money in Tax Amnesty?

A ransom is an amount of money paid to the state treasury as a condition for obtaining tax amnesty.

Will there be another Tax Amnesty in Indonesia?

The government has confirmed that there are no plans to repeat the Tax Amnesty program volume 3, as it is hoped that taxpayers will be more compliant after the previous program.