Indonesia Advisory

Sunset policy applied by the Directorate General of Taxation has not enhanced compliance taxpayers significantly whereas the sanction elimination program would expire soon, Bisnis Indonesia Daily reported on Monday.

Director General of Taxation Darmin Nasution said that the government must take other measures, such as law enforcement to enhance the compliance.

-----------------------------------------------------------------------------------

Visit Jakarta Reference www.jakarta-reference.blogspot.com

on Jakarta Travel Info - Tourist place for backpackers etc.

------------------------------------------------------------------------------------

"Tax compliance contains a substance of enforcement. Compliance could be established if other institutions conduct and support the enforcement consistently,” he said in Jakarta last week.

Sunset policy constitutes a taxation facility governed in Law Number 28 Year 2007 regarding Taxation General Provisions and Procedures. The facility enables individual or corporate taxpayers to rectify their annual income tax returns in 2006 and previous years without facing administrative sanction.

In the meantime, State Minister for National Development Planning Paskah Suzetta expects the Directorate General of Taxation to extend the program as a compensation for the absence of additional fiscal stimulus next year.

“The sunset policy may be used to boost the real sector amid the liquidity crisis. In addition, the government would no longer provide stimulus funds for the real sector in the form of government-borne tax (DTP) worth Rp 10 trillion next year,” he said.

-----------------------------------------------------------------------------------
Looking for a place to stay in Jakarta?

Exclusive Boarding House or cheap apartment rental?

Visit Indonesia Sewa www.indonesia-sewa.blogspot.com
------------------------------------------------------------------------------------