It is undeniable that many people do not believe in the existence of taxes, seen from the community environment they only know taxes as a tradition of paying a number of levies to the government, without understanding the basis and intent and purpose of paying taxes due to a lack of understanding about taxes.
Consciously or not, taxes currently play a major role in the entire state financing structure, and taxes will always be dynamic following business patterns that develop in society. As good citizens, we must pay taxes according to the tax rate imposed.
Tax definition
Law No. 28 of 2007 concerning General Provisions and Procedures for Taxation (KUP), taxes are mandatory contributions to the state owed by individuals or entities that are coercive by law, by not getting compensation directly and used for the needs of the state for the greatest extent people’s prosperity.
Tax Function
In general, there are 4 tax functions, namely:
The function of the budget (budgetair) as a source of funds for the government, to finance its expenditures.
The function of regulating (regulerend) as a means of regulating or implementing government in the socio-economic field.
Stability, taxes as state revenue can be used to carry out government policies.
Redistribution of Income, state revenue from taxes is used to finance public expenditures and national development so as to open employment opportunities with the aim of increasing people’s income.
Tax Collection System
The tax collection system can be divided into three systems (Mardiasmo, 2011: 7), namely as follows:
1. Official Assessment system
Is a collection system that gives authority to the government (fiskus) to determine the amount of tax owed by taxpayers.
2. Self Assessment System
Is a collection system that gives full authority to taxpayers to calculate, calculate, pay, and report the amount of tax owed on their own.
3. With Holding System
Is a collection system that authorizes a third party (not the tax authorities and not the Taxpayer concerned) to determine the amount of tax owed by the Taxpayer.
Types of Taxes
Central taxes managed by the Directorate General of Taxes
PPh (Income Tax)
VAT (Value Added Tax)
PPnBM (Sales Tax on Luxury Goods)
PBB (Building Land Tax)
Stamp Duty