TAX COLLECTION IN THE ANNUAL REPORT 2022
Tax Collection
DGT conducted tax collection on tax arrears that must be payed by the taxpayers. According to Tax Law, a series of tax collection including reprimanding or warning, carrying out instant and simultaneous collection, notifying the Coerce Warrant, proposing prevention of escape, carrying out confiscation, carrying out imprisonment, and auctioning confiscated goods. All of these tax collection efforts aim to make the Taxpayer pay off the tax debt and tax collection costs.
In order to achieve well-targeted and qualified tax collection that can increase tax revenue and sustainable taxpayer compliance, DGT will carry out a number of efforts in the tax collection domain in 2022 as follows:
a. improve the quality and effectiveness of targeted tax collection actions through:
1) organizing the Disbursement Priority Target List (DSPC) for the taxpayers who will be subject to tax collection priority;
2) preparation of tax collection actions that include planning of tax collection activities during 2022, profiling and asset tracing of taxpayers by optimizing the data and information available in the DGT Information System, and
3) implementation of other tax collection support actions such as blocking Tax Bearer access to the Legal Entity Administration System (SABH) and blocking customs access;
b. improving the quality of implementation and supervision of comprehensive tax collection through coordination and collaboration of tax collection with internal and external parties, as well as supervision of the implementation of DSPC and tax collection performance achievements; andÂ
c. improving the quality and quantity of supporting resources and orderly administration of tax collection.
In terms of tax collection performance in 2022, DGT has succeeded in disbursing tax receivables through tax collection reaching Rp14.07 trillion. This amount is inseparable from the ongoing tax collection efforts implemented by DGT.
Based on the challenges faced by DGT in the implementation of tax collection in 2022, some improvements continued to be pursued as follows:
adjusting regulations in the field of collection that are no longer relevant to the current situation. Namely, Minister of Finance Regulation No. 189/PMK.03/2020 on Procedures for Implementing Tax Collection of Tax Arrears that had not accommodated provisions regarding support actions for tax collection in the form of blocking access to public services;
strive for the availability of human resources for tax collection, namely Tax Bailiffs, who are qualified in terms of quantity and capacity; and
Build and develop a digital-based tax collection administration connected to third-party systems that can improve the efficiency and effectiveness of tax collection, one of which is the auction interconnection application owned by the Directorate General of State Assets Management.