Monetary Fiscal
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Kadin: Powers of Directorate General of Taxes to be cut
Chamber of Commerce and Industry (Kadin) Indonesia recommends that the new body established under the Ministry of Finance to implement the legislative and executive functions of the Directorate General (DG) Taxes. This new body set up to injustice in serving taxpayers (WP) can be cut and to increase taxpayer compliance.
This was conveyed by Vice-Chairman of the Fiscal and Monetary Affairs and Public Policy Haryadi B Sukamdani Chamber of Commerce during a press conference at Menara Kadin, Jakarta, Wednesday (31/3/2010).
Sukamdani Directorate General of Taxation stating that the power is still too large because it covers three functions simultaneously, namely the executive, legislative, and judiciary. "Consequently, the handling of tax objections filed by WP tend not fair and right for employees to pursue the tax burden as the current revenue target," said Sukamdani.
Therefore, the Chamber proposed that the functions of the Directorate General of Taxation is limited only executive function is to collect taxes and monitor tax compliance. As for the legislative and judicial functions should be separated and created a new agency under the Ministry of Finance.
"These three functions must be separated, but not in relation to corruption. Directorate General of Taxation burdened by the withdrawal of such a vast empire. The function of the executive, should it be. The others remain under the Minister of finance, but not under the Directorate General," he said.
As known, the tax legislative function under the authority of the Directorate General of Taxation to issue regulations implementing the tax laws and provide an interpretation of tax regulations. The judicial function is to handle an objection against an assessment. "With this new body there is no burden of obligation to pursue such revenue target this time," he said.
However, he also declared that the spirit of bureaucratic reforms undertaken in the Directorate General of Taxation should be appreciated, but the system needs to be fixed. "Her spirit's been okay, just the system alone is not okay," he said.
This was conveyed by Vice-Chairman of the Fiscal and Monetary Affairs and Public Policy Haryadi B Sukamdani Chamber of Commerce during a press conference at Menara Kadin, Jakarta, Wednesday (31/3/2010).
Sukamdani Directorate General of Taxation stating that the power is still too large because it covers three functions simultaneously, namely the executive, legislative, and judiciary. "Consequently, the handling of tax objections filed by WP tend not fair and right for employees to pursue the tax burden as the current revenue target," said Sukamdani.
Therefore, the Chamber proposed that the functions of the Directorate General of Taxation is limited only executive function is to collect taxes and monitor tax compliance. As for the legislative and judicial functions should be separated and created a new agency under the Ministry of Finance.
"These three functions must be separated, but not in relation to corruption. Directorate General of Taxation burdened by the withdrawal of such a vast empire. The function of the executive, should it be. The others remain under the Minister of finance, but not under the Directorate General," he said.
As known, the tax legislative function under the authority of the Directorate General of Taxation to issue regulations implementing the tax laws and provide an interpretation of tax regulations. The judicial function is to handle an objection against an assessment. "With this new body there is no burden of obligation to pursue such revenue target this time," he said.
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