Taxation Update

New circular regarding supervision after Tax Amnesty

By Ellisa Kosadi
Sunday, August 26, 2018

The Directorate General of Taxation in July issued an updated version of Circular no. SE-20/PJ/2017 detailing taxpayer supervision following the end of the Tax Amnesty period. The circular, numbered SE-14/PJ/2018, includes significant details that were not previously part of the original circular, such as the method and criteria of supervision.

This aims to tighten supervision of taxpayers who did not participate in the amnesty program, as well as building a framework to better manage taxpayer data.

Under the circular, subjects of this supervision are:

  • Taxpayers who did not participate in the Tax Amnesty due to discrepancy in wealth information between system information internal data and externally obtained data
  • Taxpayers who participated in the Tax Amnesty. They are not the main target of this supervision, but their activities are subject to monitoring under these criteria:
    • Taxpayer taxpaying activities in the last taxation year
    • If there are discrepancies between reported wealth and the amount of tax paid.

Supervision of taxpayers who did not participate in the Tax Amnesty program will be done by comparing internal and external information about taxpayer wealth owned by the Directorate General of Tax, while supervision of Tax Amnesty participants will be done by analyzing data from reports submitted during the amnesty period. Supervision of both groups will be done by account representatives (AR) from the Supervision and Consulting Section II/III/IV and the Extensification and Advisory unit.

The Directorate of Internal Compliance and Human Resources Transformation will work together with Internal Compliance units in directorate general regional tax offices to monitor all supervising efforts. Monitoring will be done using the Approweb application. The directorate general and regional internal compliance units are responsible for following up any unprocessed data and clarifying any potential problems in supervision and investigation processes.  

The circular came into effect on July 19, 2018.

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