Related to a discourse of tax amnesty for certain taxpayers which is now the public polemic, Indonesian Young Entrepreneurs Association (HIPMI) Tax Center Chairman, Ajib Hamdani said that tax amnesty needs to be done with justice for all taxpayers and need to be emphasized this tax amnesty have to support welfare the people.
“Money knows no citizenship, money will come if there is a chance business carrying good profit. Well, for that the government should create a regulation taxation so it become more defined and a good system to the public. Businessman also need to be provided an ease in terms of licensing, possession of a building, political stability, and legal certainty,”he stated in HIPMI Tax Corner about Tax Amnesty and Justice Public.
Beforehand, several things that occurs to be an obstacle for entrepreneurs include tax affairs, or such as other costs besides value-added tax (VAT), license, tribute, and others. “Do not think that it is enough for business people to pay values-added tax. After the PPN finished, though it is not yet done with the taxation. It is the government’s tendency to create sporadic and uncontinuous policy. It is deeply disturbing and there should be a clear legal points in the future,” Ajib said.
He adds that Indonesian tax equality is very required, considering there are still many Indonesian funds parked outside Indonesia. This will bring risks for Indonesia because the funds will increase the state foreign exchange from tax. “We proposed a fair tax amnesty only for business people abroad,” said the head of BPP HIPMI Bahlil Lahadalia. He adds that Indonesia economic development is a lot better than before and the government could be more fair in taxation regulations. As we see, tax income for a corporate is high enough, up to 30%.
The discourse is quite causing pros and cons among Indonesian businessmen. Some think that tax amnesty only bring profit to Indonesian citizens whom invest their money in foreign countries. While domestic entrepreneurs have not received legal certainty will be accommodated or not in the formulation of the act of tax amnesty later on. “Sometimes amnesty could not be compare with fairness, because we agreed that amnesty concept was never fair but we here seek for justice as maximum as possible,” said Ajib. For domestic entrepreneurs who have not reported tax properly worn the normal tariff plus a fine, while business people with international investment attract tariffs reach 2% to 3%.
In respond to Ajib statement, Tax Center Managing Partner Danny Darussalam said that compliance declining from year to year. With these conditions, the state justification impose tax amnesty as a way to add revenue to the state. “The compliance level of Indonesian tax skids year after year from the previous year until now. For example, the Letter of Tax (SPT) in 2010 showed 58%, in 2012 decreased to 53%, in 2013 to 37%. This means that 63% of taxpayers are not adherent to tax forms. This is then what make the government think to impose tax amnesty. More further, Darussalam said that tax amnesty is a new chapter of Indonesian tax as with the end of the era of bank secrecy in he next 2017.
“What is important we are now have the clear provision about their tax obligation. Moreover recently about 96 countries have agreed to exchange of financial information. OJK enforce that all customers expected to voluntarily reported their wealth, either those located abroad or in the country,” clear Darussalam. Through tax amnesty, this tax payers will not being able to hide their wealth in foreign good shaped funds or has changed in the form of property, as well as on other assets forms.