TEMPO.CO, Jakarta- The government should immediately formulate a reference for the implementation of the Law on Tax Amnesty.
The faster the regulation is issued, the faster the tax amnesty program law is enforced.
It is also expected that the target of repatriating assets belonging to Indonesian citizens abroad could be realized this year.
Under the Tax Amnesty Law passed the House of Representatives on June 28 last, tax amnesty policy is in operation until March 2017.
When the money being targeted is expected to be returned next year, the target of fundraising will not be achieved. In fact, the funds are needed to improve budget deficit this year due the drop in tax revenue.
The government is eyeing Rp 11,500 trillion owned by Indonesians parked abroad.
It is estimated that the are 6,000 people of Indonesia in foreign accounts with a number of fantastic amount hidden to avoid taxes.
By offering 2-5 percent remission rate, it is predicted there will be much money coming back.
The government is targeting Rp 165 trillion, which will go to the 2016 revised State Budget.
The Government should make clear and transparent mechanism in raising repatriation funds.
It must be guaranteed that the tax authorities will handle the huge amount of funds from the tax amnesty policy in a clear way without conspiracy.
In fact, there is no monitoring mechanism from the people.
The public does not have access to this tax information.
Remission of tax policy must also be followed by decisive law enforcement. Money who are willing to participate in this program must be respected.
On the other hand, those who are reluctant to participate must not be allowed.
We must create rules that make them find difficulties doing their businesses in Indonesia because, basically, they make money by doing business in the country but save their money in other countries.
It must be also born in mind that this program is temporary. Therefore, the government should implement it very effectively.
The government must not create the perspective especially among taxpayers - that similar policies will be implemented again, later.
That kind of thinking will only undermine the authority of the government.
Do not forget also that the tax amnesty goal is not just to raise funds to reduce the deficit of the state budget but the main goal is much more precious, namely improving taxpayer obedience.
It means, at the end of this program, the government should not only count the money but there should be a parameter to measure the level of obedience to pay taxes, whether it improves, stays stagnant or even declined.
Tax amnesty should be the first step toward reforming taxation sector more broadly, including providing incentives for abiding taxpayers and sanctions for violators.
The government should also compensate for the shortcomings of the rules so that tax evaders have no chance to fly its assets to the tax haven countries such as Singapore.
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