Towards the close of 2020, the Directorate General of Taxes (DGT) recorded formal tax compliance data of 76.86%.
Although the ratio increased from 2019 (72.9%), DGT only received 14.6 million Annual Tax Return (SPT) out of 19 million taxpayers who were supposed to submit SPT.
The 14.6 million tax returns include both individual and corporate taxpayers.
Based on DGT data as of May 1, 2020, formal compliance for corporate taxpayers only reached 47% with a total of 658,975 tax returns.
At that time, there were still 741,000 other tax returns that the DGT was still waiting for.
Reporting from the article bisnis.tempo.co on February 18, 2020, it is known that only around 2 million MSMEs pay taxes from a total of 60 million MSMEs that have been registered as taxpayers in Indonesia.
If we reflect on this data, there are still many business entities or legal entities that have not fulfilled their obligations.
Even though a business that runs without paying taxes will bring several risks, you know.
We have summarized these things below for KH Friend, let’s see it through!
Can’t Register Online Single Submission (OSS)
OSS is a system created by the government to issue business licenses for and on behalf of ministers, heads of institutions, governors, or regents/mayors to business actors through an integrated electronic system.
One of the objectives of this OSS is to make it easier for business actors to obtain their business licenses.
For business actors who do not comply with taxes, they will not get a Business Identification Number (NIB) from the OSS system.
The reason is that OSS is connected to tax data.
Because they cannot be registered, business licenses automatically cannot be owned by business actors.
In fact, business licenses are capital for businesses to develop their business.
Banks and investors are more confident to provide funds to companies that have complete business legality.
Complicating Financial Management of Client Payments
After a transaction, clients will usually ask for proof of tax invoice.
Companies that are not tax-compliant will definitely find it difficult to obtain these invoices.
Over time, client payments are not easy to manage and the company’s financial health continues to deteriorate.
Businesses Under AEoI Scrutiny
Automatic Exchange of Information (AEoI) is a system of exchanging account information between taxpayers between countries.
This system aims to track the potential if there is tax evasion committed by entrepreneurs by hiding their income abroad.
If caught, the entrepreneur and his business will be under the supervision of AEoI.
Of course, this does not feel comfortable because every movement will always be monitored.
Not Trusted by Consumers
It is possible that the DGT will publicize which companies do not pay taxes.
As a result, consumers will not trust the company in question.
Because of these doubts, consumers then switch to other companies.
That way, the company’s income will drop and eventually go out of business.
Business License Revoked
The case of the Sky Garden club in Bali can be used as an example at this point.
Sky Garden was desperate not to pay taxes and led to the closure of the place because its business license was revoked.
Well, because of this closure, the material loss incurred must be greater than the nominal tax payment, right?
Sanctions
Sanctions for tax disobedience are stated in Law No. 28 Year 2007 on General Provisions and Tax Procedures.
It is known that if a taxpayer is absent from their tax obligations, they will be subject to sanctions from the lightest to the most severe.
The sanctions can be in the form of billing, debarment, and hostage taking for 6 months and extended for a maximum of 6 months.
Based on data from 2015 to 2017, there are at least 117 taxpayers held hostage by DGT in prison.
Moreover, the DGT has made a Potential Call Priority Target List (DSP3) which contains a list of taxpayers who are the priority targets for extracting potential during the current year both through supervision and audit activities.
If KH Friend’s business does not pay taxes, it will definitely be included in this black list.
Of course you don’t want to, right?
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KH Contact
Don’t let any of the above happen to your business.
Always remember that tax is compulsory and forceful.
If you don’t have time to take care of tax issues, there is a Legal Contract that will help.
Especially in the age of all things online, everything is made easy including tax matters.
So, there is no excuse for not paying taxes anymore!
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