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Jakarta Post

The benefits of tax amnesty (Part 2 of 2)

  • Gatot Soepriyanto

Jakarta   /   Tue, July 12 2016   /  07:49 am

Although Indonesia has applied similar programs to the tax amnesty four times (1964, 1984, 2008 and 2015), the scale and impact of these programs were not as significant as the current initiative. Thus, it comes as no surprise that concerns have been raised regarding long-term consequences and the ability of the Directorate General of Taxation to manage the 2016 tax amnesty policy.

The main point of this concern is related to loopholes within the tax amnesty law and whether any additional regulatory framework is needed to minimize these. Moreover, questions have been asked on how to further transform the tax office into a credible tax authority so that taxpayers will favor voluntarily compliance post the amnesty period.

With regard to loopholes, the approved bill is far more comprehensive than the initial 2015 draft; the final bill has additional provisions to ensure that...